6a Part 1 For each of the following situations indicate the implications for the cash flow statement, if any. a) Indicate which section of the cash flow statement (Operations, Investing, Financing) b) indicate whether the effect will be to increase cash or decrease cash. c) write NA if the situation would not be placed on the cash flow statement. All events occurred in the current year. Section of CF statement Inc. or decrease Example: A nonprofit borrowed $50,000 by issuing a long-term payable Financing Increase 1. A company purchases equipment with a 5-year useful life 52. A company paid dividends of $6,000 73. A nonprofit sold an automobile for the book value of $8000. 4. A company issued 13,000 shares of common stock for $50 each. 5. A nonprofit invested $17,000 by purchasing stock in a corporation which it plans to 16. A company purchased an asset with a useful life of 5 years by issuing a note payable. 7. A company repaid a long-term payable at maturity. 8. A company repurchased 18,000 shares of common stock as treasury stock. 9. A nonprofit issued a bond payable to raise funds for a new building. It is a 10-year bond. 2 10. A company sells a patent after using the patent for 4 years. 6b. Part II Using the information, calculate the cash from operation in the provided space. Show all calculations for full credit. bl. A company reports net income of $5,000 for Year A. The company has one current asset (Accounts receivable). The company reports beginning balance of zero and an ending balance of $2000. The company reports no current liabilities. b2. A nonprofit organization reports net income of $6,000 for Year A. The organization has no current assets. The organization has accounts payable that began with a balance of $500 and an ending balance of $800. b3. A retail business reports a net loss of $7000 for year A. The company has no current assets or current liabilities. However, the company reported $8500 in depreciation expense. 64. A company reported net income of $10,000. The company also report the following: Prepaid rent increased by $2000. Accounts receivable decreased by $1000. Unearned revenue increased by $3000. Depreciation expense was $4000. There were not other changes in current assets or current liabilities