Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flows (operating, investing, or financing), amount to be reported, and whether the item would create an increase or decrease in cash. For items that affect more than one section of the statement, indicate all affected.  Assume the indirect method of reporting cash flows from operating activities.   The first item has been completed as an example.  Some items may have more than 1 answer for each column (you can attach Excel or Word rather than typing in answer box).   Statement Amount +/– Effect Item Section to Report on Cash Depreciation of $15K for the period  Operating    $15K   Increase 1. Issue common stock for $35K       2. Increase in accounts payable of $7K       3. Retirement of $100K bonds payable at 97       4. Purchase of long-term investments for $94,500       5. Dividends declared and paid of $8,300       6. Increase in prepaid rent of $4,500       7. Decrease in inventory of $5,300       8. Purchase of equipment for $17,600 cash       9. Sale of land originally costing $134K for $130K       10. Decrease in taxes payable of $2,100

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flows (operating, investing, or financing), amount to be reported, and whether the item would create an increase or decrease in cash. For items that affect more than one section of the statement, indicate all affected.  Assume the indirect method of reporting cash flows from operating activities.
 
The first item has been completed as an example.  Some items may have more than 1 answer for each column (you can attach Excel or Word rather than typing in answer box).

 

Statement

Amount

+/– Effect

Item

Section

to Report

on Cash

Depreciation of $15K for the period

 Operating

   $15K

  Increase

1. Issue common stock for $35K

 

 

 

2. Increase in accounts payable of $7K

 

 

 

3. Retirement of $100K bonds payable at 97

 

 

 

4. Purchase of long-term investments for $94,500

 

 

 

5. Dividends declared and paid of $8,300

 

 

 

6. Increase in prepaid rent of $4,500

 

 

 

7. Decrease in inventory of $5,300

 

 

 

8. Purchase of equipment for $17,600 cash

 

 

 

9. Sale of land originally costing $134K for $130K

 

 

 

10. Decrease in taxes payable of $2,100

 

 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education