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Problem:

Putnam Corporation had these transactions during 2014.

  • Purchased a machine for $30,000, giving a long-term note in exchange.
  • Issued $50,000 par value common stock for cash.
  • Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
  • Declared and paid a cash dividend of $13,000.
  • Sold a long-term investment with a cost of $15,000 for $15,000 cash.
  • Collected $16,000 of accounts receivable.
  • Paid $18,000 on accounts payable.

Required:

Question: Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

Note: Please show the work not just the answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91164825

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