Cash payments for expenses sale of a nonoperating

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Unformatted text preview: 3. 4. 5. 6. 7. 8. 9. 10. 11. Section Operating N/A Operating Investing Operating Financing N/A Financing N/A Financing Investing N/A Inflow Outflow Amount X $ 60,000 X 40,000 94,000 15,000 75,000 X X X X 150,000 X X 475,000 100,000 P14–2 a., b., and c. Transaction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. P14–3 Section Operating Investing Operating N/A Operating Investing Operating Financing Financing Operating Financing N/A N/A N/A Inflow X Outflow X X Amount $ 52,000 12,000 30,000 X X X X 10,000 90,000 45,000 50,000 40,000 25,000 300,000 X X X a. b. Transaction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Cash Affected Yes Yes Yes Yes Yes Yes No Yes Yes No No No No Type of Effect Provided Used 13,000 Used 9,000 Provided Provided Provided Dollar Amount $ 1,200 7,000 2,500 3,000 Used 7,000 Used 5,000 Investing Investing Operating Financing Operating (for the interest) Investing or Operating (for the principal) depending on how the company acquired the note. If it was accepted in a sales transaction, it could be argued that collecting the principal is an operating activity. If the company acquired the note in any other way, the collection of the principal would be considered an investing activity. Operating N/A Financing Operating N/A N/A N/A N/A P14–4 The most notable similarity among all three companies is that they have generated increasing amounts of cash from their operating activities. Amazon.com has used cash to invest in long­term assets in two of the three years shown, while Priceline and eBay both used cash to invest in long­term assets in each of the years shown. The three companies also look very similar from a financing perspective. Priceline, Amazon and eBay typically use cash in their financing activities, which indicates either dividends have been paid, debt has been retired, or equity has been repurchased. The only difference was in 2007, when Priceline and Amazon generated cash from financing activities, meaning the firms issued equity and/or debt to raise cas...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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