Operating activities and investing activities


Problem:

Analyze the transactions above and indicate whether each transaction resulted in a cash flow from:

(a) operating activities, (b) investing activities, (c) financing activities, or (d) noncash investing and financing activities.

Global Corporation had the following transactions during 2006.

1. Issued $50,000 par value common stock for cash.

2. Collected $11,000 of accounts receivable.

3. Declared and paid a cash dividend of $25,000.

4. Sold a long-term investment with a cost of $15,000 for $15,000 cash.

5. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.

6. Paid $14,000 on accounts payable.

7. Purchased a machine for $30,000, giving a long-term note in exchange.

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Accounting Basics: Operating activities and investing activities
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