A List of Sources and Uses of Cash Are Given

question 114

Short Answer

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an operating, investing, or financing activity.
-----(a) purchase of land
-----(b) repayment of bond indebtedness
-----(c) sale of merchandise
-----(d) pay salaries and wages
-----(e) pay interest expense
-----(f) sale of office equipment
-----(g) dividends paid
-----(h) resale of Treasury Stock
-----(i) borrowing through a note payable
-----(j) dividend income

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Definitions:

Master Budget

A comprehensive financial plan for an organization, including all individual budgets related to sales, production, overheads, etc., for a specific period.

Direct Labor

The wages and salaries for the workers who are directly involved in the production of goods, easily traceable to the product.

Credit Sales

Sales made by a business where the payment is deferred, allowing the buyer to pay at a later date.

Production Budget

An estimation of the number of units that must be manufactured to meet the sales goals and the estimated costs involved.