Event d In this case there is no exchange of cash goods or service So it is not

Event d in this case there is no exchange of cash

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Event (d) – In this case, there is no exchange of cash, goods or service. So it is not a transaction Stock represents the number of shares owned by the investors (individual or group) in a Corporation. Calculate the market value of per share Total amount of cash received at the time of issuance of share is $95,000 Number of shares issued is 3,000 shares Therefore, the market value of per share is $31.67.
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Identify the activities (a) through (h) indicate whether the activity is investing or financing and the direction of the effects on cash flows whether ‘+’ increase in cash or ‘-’ decrease in cash. Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others. (a) Additional borrowing from banks comes under financing activity, and it increases the cash by $1,290 million. (b) Purchase of investments comes under investing activity, and it decreases the cash by $1 million. (c) Sales of assets and investment (assume sold at cost) comes under investing activity, and it increases the cash by $806 million. (d) Issuance of common stock comes under financing activity, and increases the cash by $70 million. (e) Purchase of plant, property, and equipment comes under investing activity, and decreases the cash by $327 million. (f) Payment of debt principal comes under financing activity, and decreases the cash by $108 million. (g) Dividend paid comes under financing activity, and decreases the cash by $735 million. (h) Receipt of principal payment on a note receivable comes under investing activity, and increases the cash by $5 million. Annual repor t is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the
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complete nancial information of a company’s financial activities to its users in order to help them analyze, and take well informed decisions. 1. Total current assets come under in the current assets section of a classified balance sheet. 2. Amount of debt principal repaid during the year comes under in the financing activities section of the statement of cash ows. 3. Summary of significant accounting policies comes under in the rst note aer the nancial statements. 4. Cash received from sales of noncurrent assets comes under in the investing activities section of the statement of cash ows. 5. Amount of dividend paid during the year comes under in the financing activities section of the statement of cash ows. 6. Short-term obligations come under in the current liabilities section of the classified balance sheet.
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