Purposes of the statement of cash flow classify each of


Neo Watch Company produces pocket watches and has had the following transactions:

1. Retired longterm 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. Paidcashdividendsof$200,000.

Required

 

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.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Purposes of the statement of cash flow classify each of
Reference No:- TGS01211021

Expected delivery within 24 Hours