State the section(s) of the statement of cash flows prepared by the indirect met

Question

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: Note: Only consider the cash component of each transaction. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". 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. $

Explanation / Answer

Cash Flow from Operating Activities Amt $ f Depreciation              37,000 a Gain from Sale of Capital Assets           (50,000) Total Cash Flow from Operating Activities         (13,000) Cash Flow from Investing Activities a Cash flow from sale of Land         120,000 b Cash paid for investment purchase         (75,000) d Cash paid for Equipment purchase         (64,000) Total Cash Flow from Investing Activities         (19,000) Cash Flow from Financing Activities g Issue of Common shares 85000 nos @$25      2,125,000 h Casg received from bond issue @99%         495,000 i Cash received from Bank Loan              43,000 Total Cash Flow from Financing Activities      2,663,000 Non Cash entries c As no information of dividends paid is available                     -   e Stock dividends do not have any cash flow

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