The following cash transactions occurred in six real-world companies. Indicate the type of cash flow activity (operating, investing, or financing) using the drop-down menu for each transaction below. Also, indicate whether the transaction represents an inflow or an outflow of cash. 1. In January, 2018 Ford Motor Company announced that it was acquiring Autonomic and TransLoc to enhance its development of driverless automobiles. No price was given. Assume this was a cash purchase. 2. During the third quarter of 2018 (July 1 through September 30), Facebook, Incorporated paid approximately $5.8 billion for expenses. 3. During the third quarter of 2018 (July 1 through September 30), General Electric Company sold some of its business units, including its Value-Based Care Division. These sales generated cash inflows of $5.6 billion. 4. During the third quarter of 2018 (July 1 through September 30), General Motors Company borrowed $32.8 billion using notes payable. 5. During the third quarter of 2018 (July 1 through September 30), International Business Machines (IBM), Incorporated collected approximately $19.1 billion in cash from revenue related to the products and services it sold. 6. During the third quarter of 2018 (July 1 through September 30), McDonald's, Incorporated paid $780 million of dividends.
The following cash transactions occurred in six real-world companies. Indicate the type of cash flow activity (operating, investing, or financing) using the drop-down menu for each transaction below. Also, indicate whether the transaction represents an inflow or an outflow of cash. 1. In January, 2018 Ford Motor Company announced that it was acquiring Autonomic and TransLoc to enhance its development of driverless automobiles. No price was given. Assume this was a cash purchase. 2. During the third quarter of 2018 (July 1 through September 30), Facebook, Incorporated paid approximately $5.8 billion for expenses. 3. During the third quarter of 2018 (July 1 through September 30), General Electric Company sold some of its business units, including its Value-Based Care Division. These sales generated cash inflows of $5.6 billion. 4. During the third quarter of 2018 (July 1 through September 30), General Motors Company borrowed $32.8 billion using notes payable. 5. During the third quarter of 2018 (July 1 through September 30), International Business Machines (IBM), Incorporated collected approximately $19.1 billion in cash from revenue related to the products and services it sold. 6. During the third quarter of 2018 (July 1 through September 30), McDonald's, Incorporated paid $780 million of dividends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following cash transactions occurred in six real-world companies. Indicate the type of cash flow activity (operating, investing, or
financing) using the drop-down menu for each transaction below. Also, indicate whether the transaction represents an inflow or an
outflow of cash.
1. In January, 2018 Ford Motor Company announced that it was acquiring Autonomic and TransLoc to enhance its
development of driverless automobiles. No price was given. Assume this was a cash purchase.
2. During the third quarter of 2018 (July 1 through September 30), Facebook, Incorporated paid approximately $5.8 billion
for expenses.
3. During the third quarter of 2018 (July 1 through September 30), General Electric Company sold some of its business
units, including its Value-Based Care Division. These sales generated cash inflows of $5.6 billion.
4. During the third quarter of 2018 (July 1 through September 30), General Motors Company borrowed $32.8 billion using
notes payable.
5. During the third quarter of 2018 (July 1 through September 30), International Business Machines (IBM), Incorporated
collected approximately $19.1 billion in cash from revenue related to the products and services it sold.
6. During the third quarter of 2018 (July 1 through September 30), McDonald's, Incorporated paid $780 million of dividends.
![Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1
[The following information applies to the questions displayed below.]
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
1. Acquired $30,000 cash from the issue of common stock.
2. Borrowed $40,000 cash from National Bank.
3. Earned cash revenues of $48,000 for performing services.
4. Paid cash expenses of $45,000.
5. Paid a $1,000 cash dividend to the stockholders.
6. Acquired an additional $20,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $53,000 cash to purchase land.
9. Determined that the market value of the land is $75,000.
Problem 2-20A (Algo) Part f
f. Determine the percentage of assets that were provided by investors, creditors, and earnings.
Note: Round your answers to 2 decimal places.
Investors
Creditors
Earnings
Assets
60.98%
36.59 %
2.44 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F475b0c8f-9dd7-487b-9264-3e04ebb75dff%2F0c9d318a-b529-4939-a7f1-c5296322975a%2Fuqaou7_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1
[The following information applies to the questions displayed below.]
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
1. Acquired $30,000 cash from the issue of common stock.
2. Borrowed $40,000 cash from National Bank.
3. Earned cash revenues of $48,000 for performing services.
4. Paid cash expenses of $45,000.
5. Paid a $1,000 cash dividend to the stockholders.
6. Acquired an additional $20,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $53,000 cash to purchase land.
9. Determined that the market value of the land is $75,000.
Problem 2-20A (Algo) Part f
f. Determine the percentage of assets that were provided by investors, creditors, and earnings.
Note: Round your answers to 2 decimal places.
Investors
Creditors
Earnings
Assets
60.98%
36.59 %
2.44 %
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