Starfruit Inc. headquartered in Ridgway, Colorado, designs,
manufactures, and markets mobile communication and media devices, personal
computers, and portable digital music players and sells a variety of related
software and services.
Assume that the following transactions (in millions)
occurred during the next fiscal year (ending on September 26, 2015):
Borrowed $50 from banks due in two years.
Purchased additional investments for $220 cash; one-fifth
were long term and the rest were short term.
Purchased property, plant, and equipment; paid $12,300 in
cash and signed a short-term note for 1,430
Issued additional shares of common stock for $855 in cash;
total par value was $1 and the rest was in excess of par value.
Sold short-term investments costing $10,050 for $10,050
cash.
Declared $49 in dividends to be paid at the beginning of the
next fiscal year.
Required:
For each of the activities (a)–(g), indicate whether the
activity is investing (I) or financing (F) and the direction and amount of the
effect on cash flows (+ for increases; − for decreases)
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