Neo Watch Company produces pocket watches and had the following transactions: 1. Retired long term bonds. 2. Sold a warehouse for $600,000. 3. Issued a long-term note payable for $350,000. 4. Purchased a new robotic system to automate manufacturing operations. 5. Purchased a 40 percent interest in Hazel Works, an electronics manufacturer. 6. Reported a loss on the sale of old equipment of $6,000. The equipment was sold for $3,000 in cash. 7. Obtained a long-term bank loan. 8. Paid cash dividends of $200,000. For purposes of the statement of cash flow, classify each of these transactions as an operating, investing, or financing activity. Additionally, indicate whether the activity is an inflow of cash or an outflow of cash.

Neo Watch Company produces pocket watches and had the following transactions: 1. Retired long term bonds. 2. Sold a warehouse for $600,000. 3. Issued a long-term note payable for $350,000. 4. Purchased a new robotic system to automate manufacturing operations. 5. Purchased a 40 percent interest in Hazel Works, an electronics manufacturer. 6. Reported a loss on the sale of old equipment of $6,000. The equipment was sold for $3,000 in cash. 7. Obtained a long-term bank loan. 8. Paid cash dividends of $200,000. For purposes of the statement of cash flow, classify each of these transactions as an operating, investing, or financing activity. Additionally, indicate whether the activity is an inflow of cash or an outflow of cash.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 33E: Stillwater Designs is a private company and outsources production of its Kicker speaker lines....

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