Sample Finance Assignment For Students

Following transactions that took place during a recent fiscal year.

The table indicating whether each item:

• Should be reported as an operating (O) activity,
• Investing (I) activity,
• Financing (F) activity,
• As a non-cash (NC) transaction reported in a separate schedule,
• Represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.

Additional information:

1. Accounts receivable increased $250,000 during the year and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Administrative expenses include depreciation expense of $90,000.