Prepare a worksheet for Young Company. EXERCISES OBJECTIVE 1 Exercise 15-25 Acti
ID: 2424837 • Letter: P
Question
Prepare a worksheet for Young Company. EXERCISES OBJECTIVE 1 Exercise 15-25 Activity Classification Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions. a.Sold a warehouse for $750,000. b.Reported a profit of $100,000. c.Retired long-term bonds. d.Paid cash dividends of $350,000. e.Obtained a mortgage for a new building from a local bank. f.Purchased a new robotic system. g.Issued a long-term note payable. h.Purchased a 40% interest in a company. i.Reported a loss for the year. j.Negotiated a long-term loan. Required: Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.
Explanation / Answer
Activity Source of cash / use of cash a. Investing Source b. Operating Source c. Financing Use d. Financing Use e. Financing Source f. Investing Use g. Financing Source h. Investing Use i. Operating Use j. No cash transaction yet Neither