Mead motors purchases an automobile

Reference no: EM13888913

Mead Motors purchases an automobile for its new car inventory from Generous Motors which finances this transaction through its financial subsidiary, Generous Motors Credit Company. Mead pays no funds to Generous Motors or GMCC untilj it sells the automobile. Mead must repay the balance of the loan plus interest to GMCC. How should Mead report the acquisition and repayment transactions in its Statement of Cash Flows.

This is what i think i know. This is a consignment problem. Mead is the Consignor. But i don't know about Generous Motors and GMCC

Reference no: EM13888913

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Mead motors purchases an automobile : Mead Motors purchases an automobile for its new car inventory from Generous Motors which finances this transaction through its financial subsidiary, Generous Motors Credit Company. Mead pays no funds to Generous Motors or GMCC untilj it sells the aut..

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