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Thursday, 2 August 2012

Below are several transactions that took place in Mohawk Company last year, identify the nature of

Below are several transactions that took place in Mohawk Company last year, identify the nature of activity and also indicate the direction of cash flow. (Leave no cells blank.)

Transaction Activity Cash Inflow / Outflow
  a. Bonds were retired by paying the principal amount due. Financing correct Cash outflow correct
  b. Interest was paid to a lender. Operating correct Cash outflow correct
  c. Income taxes were paid to the government. Operating correct Cash outflow correct
  d. A long-term loan was made to a supplier. Investing correct Cash outflow correct
  e. Cash dividends were declared and paid. Financing correct Cash outflow correct
  f. Common stock was sold for cash to investors. Financing correct Cash inflow correct
  g. Equipment was sold for cash. Investing correct Cash inflow correct
  h. Paid wages to employees. Operating correct Cash outflow correct
  i. Collected cash from customers. Operating correct Cash inflow correct
  j. Paid cash to repurchase its own stock. Financing correct Cash outflow correct
  k. Bought equipment for cash. Investing correct Cash outflow correct
  l. Paid suppliers for inventory purchases. Operating correct Cash outflow correct

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