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Assignment 1
Types of Cash Inflows and Outflows
Resources
Website icon Types of Cash Inflows and Outflows Scoring Guide. https://courserooma.capella.edu/bbcswebdav/institution/BUS/BUS3061/Version1013/Scoring_Guides/u03a1_scoring_guide.html
Microsoft Excel icon BUS3061 Assignment u03a1 Templatehttps://courserooma.capella.edu/bbcswebdav/institution/BUS/BUS3061/Version1013/Course_Files/cf_BUS3061_assignment_u03a1_template.xls
From your readings, you know that the cash flow statement classifies cash receipts and cash payments as operating, investing, and financing activities. Before preparing the cash flow statement, accounting data must be analyzed to locate transactions in both the cash account and other locations. After the transactions have been located, it should be determined whether each one affects operating, investing, or financing cash flow. Last, whether the transaction results in a cash inflow or outflow must be ascertained. Accountants consider this statement to be foundational for a business to continuously operate.
In this assignment, you will classify cash inflows and outflows as one of these three activities.
Instructions
For this assignment, use the BUS3061 Assignment u03a1 Template (listed in Resources).
Classify each of the following cash inflows and outflows as operating, investing, or financing activities:
Sale of a piece of company equipment.
Sale of common stock.
Payment to suppliers for merchandise purchased.
Payment to lenders for interest on note payable.
Sale of investments in other companies.
Purchase of land to expand plant size.
Payment to stockholders as cash dividends.
Sale of goods or services.
Payment to employees for wages and salaries.
Lending of money to other business entities.
Payment to government for property and income taxes.
Collection of principal on loans to other entities.
Interest and dividends received.
Issue of bonds to support company growth.
Purchase of investments in debt or equity of other…