Determining cash flow statement effects of transactions

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Determining Cash Flow Statement Effects of Transactions - Stanley Furniture Company is a Virginia-based furniture manufacturer. For each of the following firstyear transactions, indicate whether net cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow ( + ) or outflow ( - ), or (NE) if the transaction has no effect on cash. (H int: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.)

1. Recorded an adjusting entry to record accrued salaries expense.
2. Paid cash to purchase new equipment.
3. Collected payments on account from customers.
4. Recorded and paid interest on debt to creditors.
5. Declared and paid cash dividends to shareholders.
6. Sold used equipment for cash at book value.
7. Prepaid rent for the following period.
8. Repaid principal on revolving credit loan from bank.
9. Purchased raw materials inventory on account.
10. Made payment to suppliers on account.

Reference no: EM13507212

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