Which of the following items is reported on a statement of cash fl ows prepared by the direct method? LO11

(a) Loss on disposal of building.

(b) Increase in accounts receivable.

(c) Depreciation expense.

(d) Cash payments to suppliers.

1- Furst Corporation had the following transactions.
1- Paid salaries of $14,000.
2- Issued 1,000 shares of $1 par value common stock for equipment worth $16,000.
3- Sold equipment (cost $10,000, accumulated depreciation $6,000) for $3,000.

4- Sold land (cost $12,000) for $16,000.
5- Issued another 1,000 shares of $1 par value common stock for $18,000.
6- Recorded depreciation of $20,000.
INSTRUCTIONS For each transaction above,

(a) prepare the journal entry and

(b) indicate how it would affect the statement of cash fl ows. Assume the indirect method.