Effect of rent transactions on statement of cash flows A firm reported a balance in its Pre paid Rent (Advances to Landlord) account of $1,200 on January 1, 2009, for use of the building for the month of January 2009 On February 1, 2009, the firm paid $18,000 as the annual rental for the period from February 1, 2009, to January 31, 2010. It recorded this rental payment by debiting Prepaid Rent Advances to Landlord) and crediting Cash for $18,000. At the end of 2009, the firm made all proper adjusting entries to correctly report balance sheet and income statement amounts. Using the format of Exhibit 5.16, indicate the effects of all these transactions on the firm's statement of cash flows for2009,

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Simplified Statoment of Cash Flows (Problem 5.5 for Self-Study) EXHIBIT 5.16 Operations Cash Receipts from Customers Less: Cash Payments to Suppliers, Employees, and Others . Cash Flow from Operations [- (1) – (2)).. Reconciliation of Net Income to Cash Flow from Operations (1) -(2) 51 Net Income (3) Additions to Net Income to Compute Cash Flow from Operations Subtractions from Net Income to Compute Cash Flow from Operations.. Cash Flow from Operations [- (3) + (4) - (5)1. +(4) -(5) 51 Investing Proceeds from Dispositions of "Investing" Assets.. +(6) Cash Used to Acquire "Investing" Assets... -(7) Cash Flow from Investing [- (6) - (7)1 S2 Financing Cash Provided by Increases in Debt or Capital Stock.. +(8) Cash Used to Reduce Debt or Capital Stock. Cash Used for Dividends... Cash Flow from Financing [- (8) - (9) - (10)). Net Change in Cash [- 51 + S2 + 53] Cash, Beginning of the Period.. Cash, End of the Period [- (11) + 54]. -(9) -(10) 53 (11) 54 S5