Tabiona Company Had the Following Transactions During the Year

question 73

Essay

Tabiona Company had the following transactions during the year.

a. Received $15,000 cash payment on ac counts receivable.
b. Saldland far $60,000.
c. Faid $25,000 of its accounts paychide
d. Sold (iswued) 1,000 shares of comman stmek, $10 par, far $ 40 par share.
e. Recarded demiecietion estanse tif $ 25,000
f. Bormard $85, 000 fram Grean Earik and sipnd anote to regay in 12 morith with 10% intrest
g. Purchased equipment costing $ 40,000 by paying cash.
h. Paid interest expense of $10,000
i. Received dividend revenue of $8000.
For each of the above transactions, indicate:
1. Whether it is a cash inflow, cash outflow, or noncashitem,
2. Which category it would be reported under on a statement of cash flows: operating investing or financing (assume Tabiona uses the direct method of preparing its statement of cash flows)

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Definitions:

Productive Assets

Assets that are used in the operations of a business to generate revenue, including machinery, buildings, and equipment.

Operating Activities

Business activities and transactions related to the primary operations of a company, including cash inflows and outflows.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board for financial reporting.

Financing Cash Flow

Cash flow related to the financing activities of a business, including issuing or buying back shares, debt issuance, and payment of dividends.