a Paid 18000 to suppliers SolutionSL no Transaction Activity

(a) Paid $18,000 to suppliers.

SL no

Transaction

Activity

Explanation

Issued $200000 par value common stock upon conversion of bonds having a face value of $200000

Not Falls in cash flow statement

Conversion of bonds to stock does not result in inflow or outflow of cash.

Collected $16000 from sale of goods

Operating Activities

Operating activities include production, sales and delivery of company’s product. It also includes collecting payment from its customers. Collection from sale results in inflow of cash and it is part of main business activity i.e.: buying and selling.

SL no	Transaction	Activity	Explanation
c	Issued $200000 par value common stock upon conversion of bonds having a face value of $200000	Not Falls in cash flow statement	Conversion of bonds to stock does not result in inflow or outflow of cash.
f	Collected $16000 from sale of goods	Operating Activities	Operating activities include production, sales and delivery of company’s product. It also includes collecting payment from its customers. Collection from sale results in inflow of cash and it is part of main business activity i.e.: buying and selling.

(a) Paid $18,000 to suppliers. SolutionSL no Transaction Activity Explanation c Issued $200000 par value common stock upon conversion of bonds having a face va

a Paid 18000 to suppliers SolutionSL no Transaction Activity

Solution

Get Help Now

Submit a Take Down Notice