Dunrobin
Industries Ltd., which uses IFRS, had the following transactions during its
most recent fiscal year.
1.
Acquired raw materials inventory.
2.
Declared a cash dividend on common shares.
3.
Collected cash from tenants for rents.
4.
Acquired a 4% interest in a supplier company’s shares accounted as FV-NI.
(Management’s intention is not to trade the shares.)
5.
Made the annual contribution to the employees’ pension plan.
6.
Leased new equipment under a finance lease.
7.
Leased additional office space under an operating lease.
8.
Paid the semi-annual interest on outstanding debentures and amortized the
associated premium.
9.
Paid the supplier for the acquisition in (1.) above.
10.
Acquired land by issuing preferred shares.
11.
Paid the car dealership for a new fleet of vehicles for the sales staff.
12.
Collected a dividend on the investment made in (4.) above.
13.
Sold the old fleet of sales vehicles at an amount in excess of their carrying
amount.
14.
Distributed additional shares following a declaration of a 5% stock dividend.
Dunrobin
Industries Ltd. has adopted the policy of classifying dividends received as
investing activities, dividends paid as operating activities, and interest paid
as a financing activity on the cash flow statement.
Instructions
Identify
each transaction listed above as
(a)
An operating activity,
(b)
An investing activity,
(c)
A financing activity,
(d)
A significant non-cash investing or financing activity, or
(e)
None of these options.
Where
there are choices or options in the classification, provide details of the
options available.
(1) (a) Operating activity (indirect method only with
offsetting adjustments to income)
(2) (e) Not a cash activity
(3) (a) Operating activity
(4) (b) Investing activity
(5) (a) Operating activity
(6) (d) Non-cash investing and financing activity
(7) (e) Not a cash activity or transaction
(8) (c) Financing activity on account of the choice
made by management
(9) (a) Operating activity
(10)(d) Non-cash investing and financing activity
(11)(b) Investing activity
(12)(a) Investing activity on account of the policy
choice made by management
(13)(a) Operating activity for the gain on disposal
(indirect method only) and Investing activity for the proceeds from sale
(14) (e) Not a cash activity or transaction
