Select Transactions of SimBis Accounting Inc

question 57

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 held-for-trading investment.
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 equipment valued at $80,000 under a finance lease.
6.SAI makes payments of $15,000 on an operating lease.
7.SAI declares and distributes a stock dividend valued at $33,000.
8.SAI declares a cash dividend of $30,000.The dividends payable account increases $15,000.
9.SAI's comprehensive income for the year totaled $200,000 consisting of $150,000 net income and $50,000 other comprehensive income.
10.SAI sells a held-to-maturity investment 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:

Mundane Realism

The degree to which an experiment or research study mirrors the real world, enhancing the generalizability of its findings to everyday situations.

Field Experiment

An experiment conducted in a real-world setting.

Quasi-Experiment

An empirical study used to estimate the causal impact of an intervention, lacking the full random assignment of participants to conditions or orders.

Debriefed

The process of providing a detailed explanation or information to participants after an experiment or significant event has concluded.