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:

Decision Makers

Individuals or groups responsible for making choices or decisions within an organization, typically affecting its strategy or operations.

Plant Manager's Salary

A fixed cost representing the compensation paid to the individual responsible for overseeing the operations of a manufacturing facility.

Indirect Cost

Expenses not directly tied to a specific product or service, often including administrative and facility costs.

Direct Cost

Costs that can be directly attributed to the production of a specific good or service, such as raw materials and labor.