Reuse It Inc

question 66

Essay

Reuse It Inc.'s (RII)policy is to report all cash flows arising from interest and dividends in the operating section.The company's activities for the year ended December 31,2018 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 2017.
• 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 held-to-maturity investments 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:
a.Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
b.Identify how the activities detailed above that are not operating activities would be reported in the statement of cash flows.

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Definitions:

Sterile Catheter

A medical device used to drain fluids from or administer fluids to the body, sterilized to eliminate any microbes and minimize the risk of infection.

Lower GI Series

A medical procedure involving X-rays of the lower gastrointestinal tract to diagnose issues in the colon and rectum.

Oral Cholecystogram

A diagnostic imaging test that involves oral ingestion of a contrast material to visualize the gallbladder and detect gallstones.

Contrast Agent

A substance used in medical imaging to enhance the contrast of structures or fluids within the body, making them more visible on scans.