Scribd
Upload
61 views2 pages

CH 21 in Class Exercises Day 1

This document lists 20 transactions and indicates whether each would be reported as an operating, investing, or financing activity on a statement of cash flows. It also provides financial information for Millennium Solutions, including cash flows from investing and financing activities for 2018.

Uploaded by

Abdullah alhamaad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
61 views2 pages

CH 21 in Class Exercises Day 1

This document lists 20 transactions and indicates whether each would be reported as an operating, investing, or financing activity on a statement of cash flows. It also provides financial information for Millennium Solutions, including cash flows from investing and financing activities for 2018.

Uploaded by

Abdullah alhamaad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Ch 21 In-class problems (day 1)

A.

Listed below are several transactions that typically produce either an increase or a decreas in cash. Indicate by
letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (o),
investing (I), or financing (F) activity.

1. ______ Sale of common stock


2. ______ Sale of land
3. ______ Purchase of treasury stock
4. ______ Merchandise sales
5. ______ Issuance of a long-term note payable
6. ______ Purchase of merchandise
7. ______ Repayment of note payable
8. ______ Employee salaries
9. ______ Sale of equipment at a gain
10. ______ Issuance of bonds
11. ______ Acquisition of bonds of another corporation
12. ______ Payment of semiannual interest on bonds payable
13. ______ Payment of a cash dividend
14. ______ Purchase of building
15. ______ Collection of nontrade note receivable (principal amount)
16. ______ Loan to another firm
17. ______ Retirement of common stock
18. ______ Income taxes
19. ______ Issuance of a short-term note payable
20. ______ Sale of a copyright

These 10 skills require ZERO talent:


 Being on time
 Strong Work Ethic
 Putting in Effort
 Being Optimistic
 Being Passionate
 Being Teachable
 Being PREPARED
 Doing Extra
 Being Encouraging
 Taking Responsibility of one’s own life and everything in it!
B.

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium
Solutions, Inc. collected the following information:
 
  ($ in millions)
Payment for the early extinguishments of
 
long-term notes (book value: $50 million) $ 54
Sale of common shares  176 
Retirement of common shares   122 
Loss on sale of equipment   2 
Proceeds from sale of equipment   8 
Issuance of short-term note payable for cash   10 
Acquisition of building for cash   7 
Purchase of marketable securities (not a cash equivalent)   5 
Purchase of marketable securities (considered a cash equivalent)   1 
Cash payment for 3-year insurance policy   3 
Collection of note receivable with interest (principal amount, $11)   13 
Declaration of cash dividends   33 
Distribution of cash dividends declared in 2017   30 

1. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities
for 2018?
2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities
for 2018?

You might also like