1.) During 2021, Sixty-One Company took out a loan from a bank. The principal amount of the loan was $250,000. During the year, Sixty-One made a total of $4,250 in interest payments on this loan to the bank.

1. How would each of these components (the principal amount and the interest payments) be categorized on the statement of cash flows (operating, investing or financing)?
2. What is the total cash inflow or outflow impact on eachof the categorizations (operating, investing and financing) as a result of these two events?

2.)Judge Company had the following income statement for the current year:

Sales		$2,400,000
Cost of goods sold		1,900,000
Gross profit		500,000
Operating expenses:
Depreciation expense	$100,000
Wages expense	300,000
Advertising expense	60,000	460,000
Net income		$ 40,000

Additional information about the company follows. Read the headers below CAREFULLY!!

	End of Year	Beginning of Year
Cash	$ 84,000	$ 48,000
Accounts receivable	72,000	92,000
Inventory	185,000	160,000
Prepaid advertising	25,000	30,000
Accounts payable	110,000	80,000
Wages payable	25,000	15,000

Please lay out, in proper form, the section of the statement of cash flows relating to operating activities for the current year using the indirect method.

3.)During 2021, Stanton Company's long-term investments account (at cost) increased $50,000, which was the net result of purchasing stock costing $200,000 and selling stock costing $150,000 at a $15,000 gain. Stanton's notes payable account increased $60,000, the net result of issuing $125,000 of notes and paying $65,000 during the year on notes.

What items and amounts appear in these sections of Stanton Company's 2021 statement of cash flows:

a. Cash flows from investing activities

b. Cash flows from financing activities

4.) The following schedule of information relates to Kayster, Inc. for the year ended December 31, 2022:

Depreciation expense	$ 87,960
Net income	502,800
Cash at start of year	44,040
Nonoperating cash receipts:
From sale of plant assets (recorded a gain of $2,400)	39,000
From sale of marketable securities	93,600
Nonoperating cash payments:
For repurchase of preferred stock	114,000
For purchase of bonds as investment	319,320
To stockholders as dividends	141,240
Change in working capital accounts:
Accounts receivable increase	97,080
Inventory increase	6,480
Accounts payable decrease	44,400
Accrued liabilities increase	7,920

1. Prepare, in good form, a full2022 statement of cash flows for Kayster, Inc., using the indirect method for the operating section, and the direct method for the investing and financing sections.