Pioneer Corporation had these transactions during 2011. (a) Issued 50,000 par value common stock for cash. for 30 surprise alone-term note.in exchange (c) issued 200,000 200,000 (d) Declared 2-paid a cash dividend of 18,000 (e) Sold a long-term investment with a cost of 15,000 for 15,000 000 cash (f) Collected 16,000 of accounts receivable. (g) Paid 18,000 on accounts payable. Instructions Analyze the transactions and indicate whether Spothiransaction resulted in a cash flow from

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Pioneer Corporation had these transactions during 2011. (a) Issued 50,000 par value common stock for cash. for 30 surprise alone-term note.in exchange (c) issued 200,000 200,000 (d) Declared 2-paid a cash dividend of 18,000 (e) Sold a long-term investment with a cost of 15,000 for 15,000 000 cash (f) Collected 16,000 of accounts receivable. (g) Paid 18,000 on accounts payable. Instructions Analyze the transactions and indicate whether Spothiransaction resulted in a cash flow from

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Answer 1

Let's analyze each transaction to determine whether it resulted in a cash flow from (inflow) or a cash flow to (outflow) the company:

(a) Issued $50,000 par value common stock for cash.
- This transaction results in a cash inflow of $50,000.

(b) Borrowed $30,000 from a bank by issuing a short-term note.
- This transaction results in a cash inflow of $30,000.

(c) Issued $200,000 par value common stock for a long-term note.
- This transaction does not result in immediate cash flow as it is an exchange of non-cash assets.

(d) Declared and paid a cash dividend of $18,000.
- This transaction results in a cash outflow of $18,000.

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
- This transaction results in a cash inflow of $15,000.

(f) Collected $16,000 of accounts receivable.
- This transaction results in a cash inflow of $16,000.

(g) Paid $18,000 on accounts payable.
- This transaction results in a cash outflow of $18,000.

Summarizing the cash flows:
- Cash inflows: $50,000 (a) + $30,000 (b) + $15,000 (e) + $16,000 (f) = $111,000
- Cash outflows: $18,000 (d) + $18,000 (g) = $36,000

Net cash flow from these transactions:
$111,000 (inflow) - $36,000 (outflow) = $75,000

Therefore, the net result is a cash inflow of $75,000.

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