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Kiley Corporation had these transactions during 2022.Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.(a) Purchased a machine for $30,000, giving a long-term note in exchange.(b) Issued $50,000 par value common stock for cash.(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.(d) Declared and paid a cash dividend of $13,000.(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.(f) Collected $16,000 from sale of goods.(g) Paid $18,000 to suppliers.select an option:Financing ActivitiesInvesting ActivitiesOperating ActivitiesNoncash Investing and Financing Activities

Sagot :

The analysis of Kiley Corporation's 2022 transactions, indicating whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity, is as follows:

Operating Activities:

f) Collected $16,000 from sale of goods.

g) Paid $18,000 to suppliers

Investing Activities:

e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.

Financing Activities:

b) Issued $50,000 par value common stock for cash.

d) Declared and paid a cash dividend of $13,000.

Noncash Investing and Financing Activities:

a) Purchased a machine for $30,000, giving a long-term note in exchange.

c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.

What are the operating activities?

The operating activities refer to the company's core business activities, including

  • Manufacturing
  • Distribution
  • Marketing
  • Selling.

What are the financing activities?

The financing activities deal with the acquisition and repayment of finance, and payment of returns (interests and dividends).

What are the investing activities?

The investing activities are the acquisition and sale of long-term assets and investments.

Finally, the non-cash investing and financing activities refer to investing and financing activities that do no involve cash movements.

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