Identify the transactions as an operating, investing and financing activity. Also, state whether the transaction is a source of cash or is a use of cash.

Question

During the year, a merchandising company had the following transactions: Generated 300.000 TL revenue and incurred 225.000 TL expense. Issued new shares of 20.000 at a price of 1,2 TL (par value is 1 TL). Repurchased 10.000 of these new shares at a price of 1,1 TL. Sold these repurchased shares at a price of 0,5 TL. Revalued its headquarters building as well as its one of the rental properties. The increases in the relevant equity and income items have been found to be 15.000 TL and 20.000 TL. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 TL. Then, what was the opening balance of the retained earnings at the beginning of the year? a) 10.000 TL b) 16.000 TL c) 20.000 TL d) 26.000 TL

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Chapter 14, Problem 17BEA

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Identify the transactions as an operating, investing and financing activity. Also, state whether the transaction is a source of cash or is a use of cash.

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During the year, a merchandising company had the following transactions: Generated 300.000 TL revenue and incurred 225.000 TL expense. Issued new shares of 20.000 at a price of 1,2 TL (par value is 1 TL). Repurchased 10.000 of these new shares at a price of 1,1 TL. Sold these repurchased shares at a price of 0,5 TL. Revalued its headquarters building as well as its one of the rental properties. The increases in the relevant equity and income items have been found to be 15.000 TL and 20.000 TL. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 TL. Then, what was the opening balance of the retained earnings at the beginning of the year? a) 10.000 TL b) 16.000 TL c) 20.000 TL d) 26.000 TL

Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 69,000 Marketable securities $ 25,900 Accounts receivable, net $ 347,600 Inventory $ 457,400 Prepaid expenses $ 7,800 Accounts payable $ 198,200 Notes due within one year $ 98,000 Accrued liabilities $ 59,100 During the year, Denna Company completed the following transactions: Paid a cash dividend previously declared, $29,000. Issued additional shares of common stock for cash, $198,000. Sold inventory costing $69,200 for $99,000, on account. Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $29,000. Paid accounts payable, $98,400. Borrowed cash on a short-term note with the bank, $58,500. Sold inventory costing $19,800 for $13,200 cash. Purchased inventory on account, $49,250. Paid off all short-term notes due, $156,500. Purchased equipment for cash, $74,200. Sold marketable securities…

Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 64,000 Marketable securities $ 27,400 Accounts receivable, net $ 335,600 Inventory $ 444,400 Prepaid expenses $ 6,800 Accounts payable $ 189,200 Notes due within one year $ 88,000 Accrued liabilities $ 54,600 During the year, Denna Company completed the following transactions: Ex. Paid a cash dividend previously declared, $24,000. Issued additional shares of common stock for cash, $188,000. Sold inventory costing $65,200 for $94,000, on account. Wrote off uncollectible accounts in the amount of $7,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $24,000. Paid accounts payable, $90,400. Borrowed cash on a short-term note with the bank, $51,000. Sold inventory costing $21,300 for $14,200 cash. Purchased inventory on account, $45,500. Paid off all short-term notes due, $139,000. Purchased equipment for cash, $70,200. Sold…