In the table below review the transaction and select the appropriate type of act
ID: 2705659 • Letter: I
Question
In the table below review the transaction and select the appropriate type of activity and cash flow.
Paying commissions to sales force
Selling goods to customers
Buying equipment for use in manufacturing
Selling common stock to an investor
Borrowing cash from a bank
Selling equipment used in the company's manufacturing
Purchasing goods to sell to customers
Buying land for a future plant site
Paying back the principle on a loan
Paying utility bills
Paying dividends to owners
Buying a display case for items to be sold
Explanation / Answer
Paying commissions to sales force --Operating Activity- Negativ Cashflow
Selling goods to customers---Operating actvity--possitive cash flow
Buying equipment for use in manufacturing----investing Activity-Negative cash flow
Selling common stock to an investor----Financing Activity--Positive cash flow
Borrowing cash from a bank----Financing Acitvity---Positive cash flow
Selling equipment used in the company's manufacturing---Investing activity--Positive cash flow
Purchasing goods to sell to customers----Operating activity--Negative cash flow
Buying land for a future plant site---Investing Activity--Negative cash flow
Paying back the principle on a loan----Financing activity---Negative cash flow
Paying utility bills----Operating activity---Negative cash flow
Paying dividends to owners----Financing activity----Neative cash flow
Buying a display case for items to be sold----Investing activity---Negative cash flow.