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    Iup522-3 - HW

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    1) The document classifies 5 cash flow transactions as operating, investing or financing activities. Issuing common stocks is classified as a financing activity. Purchasing inventory is an operating activity. Purchasing equipment by mortgage is an investing activity. Prepaying 2-year rent expense is an operating activity. Declaring and paying dividends is a financing activity. 2) Based on a condensed income statement, the document calculates cash collected from customers as $12,300,000 and cash paid to suppliers as $7,540,000.

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    Iup522-3 - HW

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    Bartholomew
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    1) The document classifies 5 cash flow transactions as operating, investing or financing activities. Issuing common stocks is classified as a financing activity. Purchasing inventory is an operating activity. Purchasing equipment by mortgage is an investing activity. Prepaying 2-year rent expense is an operating activity. Declaring and paying dividends is a financing activity. 2) Based on a condensed income statement, the document calculates cash collected from customers as $12,300,000 and cash paid to suppliers as $7,540,000.

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    IUP522-3 -HW

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    1) The document classifies 5 cash flow transactions as operating, investing or financing activities. Issuing common stocks is classified as a financing activity. Purchasing inventory is an operating activity. Purchasing equipment by mortgage is an investing activity. Prepaying 2-year rent expense is an operating activity. Declaring and paying dividends is a financing activity. 2) Based on a condensed income statement, the document calculates cash collected from customers as $12,300,000 and cash paid to suppliers as $7,540,000.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    3 views1 page

    Iup522-3 - HW

    Uploaded by

    Bartholomew
    1) The document classifies 5 cash flow transactions as operating, investing or financing activities. Issuing common stocks is classified as a financing activity. Purchasing inventory is an operating activity. Purchasing equipment by mortgage is an investing activity. Prepaying 2-year rent expense is an operating activity. Declaring and paying dividends is a financing activity. 2) Based on a condensed income statement, the document calculates cash collected from customers as $12,300,000 and cash paid to suppliers as $7,540,000.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    BS,UIBE Boyuan Leng IUP2020016 uiberen

    IUP522 Cash Flow Analysis


    Homework 3

    I. Classification of cash flow transactions.

    Cash flow classification


    Transaction Operating Investing Financing
    activity activity activity
    1 Issued common stocks

    2 Purchased inventory

    3 Purchased equipment by mortgage

    4 Prepaid 2-year rent expense

    5 Declared and paid dividends

    II：Based on the following condensed Income Statement, please calculate:


    1. cash collected from customers and
    2. cash paid to suppliers.

    Cash Collected from customers: $13,000,000 - ($2,400,0000 - $1,700,000) = $12,300,000

    Cash paid to suppliers: $7,600,000 + ($1,020,000 - $840,000) - ($960,000 - $720,000) = $7,540,000

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