Select Transactions of SimBis Accounting Inc

question 17

Essay

Select transactions of SimBis Accounting Inc. (SAI)are listed below. SAI uses the indirect method to determine cash flows from operating activities.
1. SAI purchases a $200,000, 45-day Treasury bill and classified it at FVPL.
2. SAI amortizes $32,000 of the discount on bonds payable.
3. At year-end SAI increases its allowance for bad debts by $10,000.
4. SAI's income tax expense totaled $40,000. Its income tax payable account increased $5,000, while its deferred income tax liability account decreased $8,000.
5. SAI acquires the right to use equipment valued at $80,000 under a lease agreement.
6. SAI declares and distributes a stock dividend valued at $33,000.
7. SAI declares a cash dividend of $30,000. The dividends payable account increases $15,000.
8. SAI's comprehensive income for the year totaled $200,000 consisting of $150,000 net income and $50,000 other comprehensive income.
9. SAI sells an investment at amortized cost for $22,000. The investment's amortized cost is $20,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows. For items with multiple reporting options, identify all available options. For items not reported on the statement of cash flows, indicate the disclosure requirements, if any.

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Definitions:

Public Order Crime

Acts that are deemed illegal because they arguably harm society's well-being or morality rather than individual victims directly, such as public intoxication or vandalism.

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Bankruptcy Reform Act

Legislation that amends the bankruptcy laws of a country, often intended to make it more difficult for individuals to file for bankruptcy and to ensure that creditors receive a higher degree of repayment.

Critical Legal Scholars

A movement in legal thought that challenges and seeks to overturn accepted norms and standards in legal theory and practice, emphasizing the role of social, political, and economic factors in the law.