line State the section(s) of the statement of cash flows prepared by the indirec

Question

line State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, Investing activities, financing activitlies, or not reported) that would be reported for each of the following transactions: 10 POINTS (a) Received $145,000 from the sale of land costing $70,000. (b) Purchased investments (c) Declared and paid cash dividends. (d) Acquired equipment for cash. (e) Declared and issued common stock as a stock dividend. (0 Recognized depreciation for the year. (g) Issued shares of common stock. Issued bonds. Borrowed from Regional Bank, issuing a 5-year, 8% note for that amount.

Explanation / Answer

a) +145000 Cash Flow from Investing activity(+145000) and cash flow from operating activity-Gain on sale of land (145000-70000) = -75000 b cash flow from investing activity c cash flow from Financing activity d cash flow from investing activity e Not reported (as it is non cash item) f not reported non cash item g cash flow from financing activity h cash flow from financing activity i Not reported (as it is non cash item)

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