Rensing Corporation had these transactions during 2010. Analyze the transactions and indicate
whether each transaction resulted in a cash flow from
investing and financing activities.
Purchased a machine for $30,000, giving a long-term note in exchange.
Issued $50,000 par value common stock for cash.
Issued $200,000 par value common stock upon conversion of bonds having a
face value of $200,000.
Declared and paid a cash dividend of $18,000.
Sold a long-term investment with a cost of $15,000 for $15,000 cash.
(f) Collected $16,000 of accounts receivable.
Paid $18,000 on accounts payable.
The information in the table is from the statement of cash flows for a company at four different
points in time (A, B, C, and D). Negative values are presented in parentheses.
For each point in time, state whether the company is most likely characterized as being in the
Point in Time
Cash provided by operations