ACCT 200 1st Edition Lecture 22 Outline of Last Lecture I Journal Entry for Stock Dividends II Balance Sheet for Stockholder s Equity III E 10 12 IV Return on Equity V BE 10 15 VI Earnings Per Share VII Exam 3 Information Outline of Current Lecture I Types of Cash Flow Activities II Examples Current Lecture operating activity anything to do with the income statement changes in current assets or current liabilities Investing activity changes in long term assets purchase or sale of property plant equipment purchase or sale of long term investments Financing activity sale of common or preferred stock purchase of treasury stock borrowing money proceeds from borrowing money repayment of debt loans payment of cash dividends Need to know if each provides cash coming in or cash going out Non cash activity buying equipment with shares of stock converting debt into common stock buying equipment with debt only no cash E 11 4 Issue 20 million in bonds financing money Purchase of equipment 80 000 investing money Pay acct payable off 20 000 operating money Collect acct receivable of 15 000 operating money Exchange common stock for land 300 000 non cash transaction Pay a cash dividend of 10 000 financing money What is the cash flow from operating activity 20 000 15 000 5000 operating activity Purchase of long term investment investing money Purchase of inventory for 40 000 operating money Cash sales to customers for 100 000 operating money Payment of wages expense 20 000 operating money Convert acct receivable information into cash flow information Sales information with acct receivable Begin acct rec sales end acct receivable cash collections from customers Begin acct payable purchase end acct payable cash payments to venders businesses purchased from
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