Endnote Enterprises entered into the following transactions during 2012:

1. Sold merchandise for $52,000 in cash.

2. Purchased a parcel of land. The company paid $12,000 m cash and issued a $30,000 note payable for the remainder.

3. Purchased a three-year insurance policy for $30,000.

4. Purchased a building in exchange for a long-term note with a face value and present value of $115,000.

5. Collected $100,000 on a long-term note receivable. Included in the $100,000 is $6,000 in interest earned and accrued in the previous period and $4,000 in interest earned in the current period.

6. Collected from customers $45,000 that will not be earned until 2013.

7. Reacquired 5,000 shares of its common stock for $10 per share.

8. Declared and paid a cash dividend of $45,000.

9. Paid $25,000 for wages accrued in a prior year.

10. Retired $500,000 in bonds payable. The company gave the creditor $300,000 in cash and $200,000 in common stock.

11. Purchased $60,000 of inventory on account.

12. Wrote off an open account ($5,000) as uncollectible (allowance method).

13. Recorded $84,000 in depreciation expense for the year.

Endnote Enterprises is in the process of preparing its statement of cash flows under the direct method.

Required

Use the chart format below and on the next page to indicate the following:

(a) The section of the statement of cash flows in which each transaction should be listed. Use the following terms:

(1) Operating- for operating activities

(2) Investing-for investing activities

(3) Financing-for financing activities

(4) N/A-for items that would not be included on the statement of cash flows

(b) Whether the transaction would involve an inflow or an outflow of cash.

(c) The dollar amount, if appropriate, that the company would report on the statement of cash flows.

The first transaction is done for you as an example

Transaction Section Inflow Outflow Amount

1. Operating X $52,000