Kiley Corporation had these transactions during 2022. Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Purchased a machine for $30,000, giving a long-term note in exchange. select an option (b) Issued $50,000 par value common stock for cash. select an option (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. select an option (d) Declared and paid a cash dividend of $13,000. select an option (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. select an option (f) Collected $16,000 from sale of goods. select an option (g) Paid $18,000 to suppliers.

Respuesta :

Answer:

(a) Noncash investing and financing activities

(b) Financing activity

(c) Noncash investing and financing activities

(d) Financing activity

(e) Investing activity

(f) Operating activity

(g) Operating activity

Explanation:

It is helpful to run through the characteristics of these activities:

- Non-cash investing and financing activities: as the name may indicate, these involves activities where the firm finances/ disposal of its investment or restructures its obligations by issuing/accepting financial instruments/assets rather than by cash. Thus, (a) and (c) fall among this activity type.

- Financing activity: activities where cash actually outflow or inflow a firm relating to the firm's raising fund through debt/equity or paying its financial commitment to debt holders, shareholders. Thus (b) and (d) fall among this activity type.

- Investing activity: activities where cash actually outflow or inflow a firm relating to the firm's investing/disposing of an assets. Thus, (e) fall among this activity type.

- Operating activity: activities where cash actually outflow or inflow a firm relating to its daily core business activities, transactions. Thus, (g) and (f) fall among this activity type.