Chapter 1, Problem 18E

D&D Company reports select items from its statement of cash flows. Identify those items related to operating activities and compute net cash flows from operating activities. Activity Cash paid to purchase property Cash from selling merchandise Cash paid for income taxes Cash received from a long-term note Cash paid to repurchase stock O Cash received from sale of investments Cash received from issuing equity shares Cash paid to purchase merchandise Cash paid to purchase investment securities Cash paid in salaries and wages Note: Cash outflows should be indicated by a minus sign. Activity Net cash flows from operating activities $ Amount 0 Amount $ 400,000 688,000 135,000 850,000 100,000 40,000 500,000 710,000 50,000 410,000

D&D Company reports select items from its statement of cash flows. Identify those items related to investing activities and co- net cash flows from investing activities. Activity Cash paid to purchase property Cash from selling merchandise Cash paid for income taxes Cash received from a long-term note Cash paid to repurchase stock Cash received from sale of investments Cash received from issuing equity shares Cash paid to purchase merchandise Cash paid to purchase investment securities Cash paid in salaries and wages Note: Cash outflows should be indicated by a minus sign. Activity Net cash flows from investing activities $ Amount 0 Amount $ 400,000 688,000 135,000 850,000 100,000 40,000 500,000 710,000 50,000 410,000

From page 4-7 of the VLN, the indirect method of the Statement of Cash flows: Group of answer choices A.will show net income as the first item in the operating activity section. B. will show where cash came from and went from operating activities. C. will show dividends declared during the year in the investing activity section. D. will show the amount the company purchased of long-term assets in the financing activity section.