Classification of cash flows [LO21-3, 21-4, 21-5, 21-6] Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.
Transactions
1. Sale of Common Stock.
2. Sale of Land
3. Purchase of Treasury Stock
4. Merchandise Sales
5. Issuance of a long-term note payable
6. Purchase of merchandise
7. Repayment of note payable
8. Employee salaries
9. Sale of equipment at a gain.
10. Issuance of bonds
11. Acquisition of bonds of a another corporation
12. Payment of semiannual interest on bonds payable
13. Payment of a cash dividend
14. Purchase of a building
15. Collection of a nontrade note receivable (principal amount)
16. Loan to another firm.
17. Retirement of common stock.
18. Income taxes.
19. Issuance of short-term note payable
20. Sale of copyright

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)