State the Section(s) of the Statement of Cash Flows Prepared $\$ 120,000$

question 138

Essay

State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: (a) Received $\$ 120,000$ from the sale of land costing $\$ 70,000$
(b) Purchased investments for $\$ 75,000$
(c) Declared $\$ 35,000$ cash dividends on stock. $\$ 5,000$ dividends were payable at the beginning of the year, and $\$ 6,000$ were payable at the end of the year
(d) Acquired equipment for $\$ 64,000$ cash
(e) Declared and issued 100 shares of $\$ 20$ par common stock as a stock dividend, when the market price of the stock was $\$ 32$ a share
(f) Recognized depreciation for the year, $\$ 37,000$
(g) Issued 85,000 shares of $\$ 10$ par common stock for $\$ 25$ a share, receiving cash
(h) Issued $\$ 500,000$ of 20 -year, $10 \%$ bonds payable at 99
(i) Borrowed $\$ 43,000$ from Regional Bank, issuing a 5 -year, $8 \%$ note for that amount
A)Operating activities
B)Financing activities
C)Investing activities
D)Schedule of noncash financing and investing

• A)Operating activities
• B)Financing activities
• C)Investing activities
• D)Schedule of noncash financing and investing

Determine the net working capital and its changes over time.

Understand the importance of operating cash flow in business operations.

Analyze shareholders' equity and understand how it can change over a period.

Evaluate the financial position through net working capital and shareholders' equity.

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Definitions:

Prohibited

Forbidden by law, rules, or other forms of authority.

Infringes

The act of violating, breaching, or encroaching upon laws, regulations, contracts, or the rights of others.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a given set of resources and technology.

Efficiently

The manner of achieving a goal or completing a task with the minimum waste of time and effort.