Answered Essay: American General Company experienced the following accounting events during 2014:

Exercise 1-18 Prepare a statement of cash flows LO 1-5 American General Company experienced the following accounting events during 2014: 1. Paid $4,000 cash for salary expense. 2. Borrowed $8,000 cash from State Bank. 3. Received $30,000 cash from the issue of common stock. 4. Purchased land for $8,000 cash. 5. Performed services for $14,000 cash 6. Paid $4,200 cash for utilities expense. 7. Sold land for $7,000 cash. 8. Paid a cash dividend of $1,000 to the stockholders. 9. Hired an accountant to keep the books. 10. Paid $3,000 cash on the loan from State Bank. Required a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). Event Classification 2. FA 3. FA 4. MA 6. OA 8. FA 10. FAI need help from this question.

American General Company experienced the following accounting events during 2014: 1. Paid $4,000 cash for salary expense. 2. Borrowed $8,000 cash from State Bank. 3. Received $30,000 cash from the issue of common stock. 4. Purchased land for $8,000 cash. 5. Performed services for $14,000 cash. 6. Paid $4,200 cash for utilities expense. 7. Sold land for $7,000 cash. 8. Paid a cash dividend of $1,000 to the stockholders. 9. Hired an accountant to keep the books. 10. Paid $3,000 cash on the loan from State Bank. a. Indicate how each of the events would be classified on the statement of cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA).

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Statementshowing Computations
Paticulars Paticulars
1) OA
2) FA
3) FA
4) IA
5) OA
6) OA
7) IA
8) FA
9) NA
10) FA
Cash flow from operating activities is a section of the cash flow statement that provides information regarding the cash-generating abilities of a company’s core activities.
Examples of Cash flow from operating activities
Cash Receipts from Customers
Cash payments for Operating Expense
Cash payment to suplliers
Cash flow from investing activities is an item on the cash flow statement that reports changes resulting from amounts spent on investments in capital assets such as plant and equipment, investments.
Ex of Cash flow from Investing activities
Sale of invt
Purchase of PPE
Sale of PPE
A category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital and repay investors, such as issuing cash dividends, adding or changing loans or issuing more stock.
Ex of Cash flow from Financing activities
Issue of Stock
Issue of additional Paid in capital
Dividends Paid
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