Tabiona Company had the following transactions during the year.

a. Received $15,000 cash payment on ac counts receivable.
b. Saldland far $60,000.
c. Faid $25,000 of its accounts paychide
d. Sold (iswued) 1,000 shares of comman stmek, $10 par, far $ 40 par share.
e. Recarded demiecietion estanse tif $ 25,000
f. Bormard $85, 000 fram Grean Earik and sipnd anote to regay in 12 morith with 10% intrest
g. Purchased equipment costing $ 40,000 by paying cash.
h. Paid interest expense of $10,000
i. Received dividend revenue of $8000.
For each of the above transactions, indicate:
1. Whether it is a cash inflow, cash outflow, or noncashitem,
2. Which category it would be reported under on a statement of cash flows: operating investing or financing (assume Tabiona uses the direct method of preparing its statement of cash flows)

Question

Tabiona Company had the following transactions during the year.
 
a. Received $15,000 cash payment on ac counts receivable.
b. Saldland far $60,000.
c. Faid  $25,000  of its accounts paychide
d. Sold (iswued) 1,000 shares of comman stmek, $10 par, far $ 40 par share.
e. Recarded demiecietion estanse tif  $ 25,000
f. Bormard $85, 000 fram Grean Earik and sipnd anote to regay in 12 morith with 10% intrest
g. Purchased equipment costing $ 40,000  by paying cash.
h. Paid interest expense of $10,000 
i. Received dividend revenue of $8000.
For each of the above transactions, indicate:
 1. Whether it is a cash inflow, cash outflow, or noncashitem,
2. Which category it would be reported under on a statement of cash flows: operating investing or financing (assume Tabiona uses the direct method of preparing its statement of cash flows)

Quizplus · Accepted Answer

The Answer of Tabiona Company had the following transactions during the year.
 
a. Received $15,000 cash payment on ac counts receivable.
b. Saldland far $60,000.
c. Faid  $25,000  of its accounts paychide
d. Sold (iswued) 1,000 shares of comman stmek, $10 par, far $ 40 par share.
e. Recarded demiecietion estanse tif  $ 25,000
f. Bormard $85, 000 fram Grean Earik and sipnd anote to regay in 12 morith with 10% intrest
g. Purchased equipment costing $ 40,000  by paying cash.
h. Paid interest expense of $10,000 
i. Received dividend revenue of $8000.
For each of the above transactions, indicate:
 1. Whether it is a cash inflow, cash outflow, or noncashitem,
2. Which category it would be reported under on a statement of cash flows: operating investing or financing (assume Tabiona uses the direct method of preparing its statement of cash flows)

Tabiona Company Had the Following Transactions During the Year