Reuse It Inc

question 42

Essay

Reuse It Inc.'s activities for the year ended December 31, 2022 included the following:
• Comprehensive income totaled $468,000 including $88,000 in other comprehensive income.
• Paid a cash dividend of $30,000 that was declared in 2021.
• Interest expense for the year was $14,000; the opening and closing balances in the interest payable account were $28,000 and $19,000, respectively.
• Accounts receivable increased $63,000 and accounts payable decreased $19,000 during the year.
• RII paid $51,000 cash for equipment.
• RII sold an investment at amortized cost for $36,000. The book value of the investment was $39,000.
• Depreciation expense for the year totaled $9,000.
• Suffered an impairment loss on patents of $1 0,000.
• Declared and issued a 2-for-l stock split. There were 20,000 ordinary shares outstanding before the split with a collective market value of $3,000,000.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method, assuming that the company's policy is to report interest and dividends received as an investing activity, and interest and dividends paid as a financing activity.

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Definitions:

Classical Conditioning

A teaching technique involving the repetitive pairing of two signals; a reaction initially caused by the second signal is ultimately induced by just the first signal.

Scale Error

A cognitive error observed in young children where they misjudge the size of objects, attempting interactions that are not possible due to size discrepancies.

Conservation Skills

Cognitive abilities described by Piaget where a child understands that certain properties of objects remain the same despite changes in their form or arrangement.

Deferred Imitation

A cognitive behavior in which an individual reproduces the actions of others after a delay.