ANNEXURE J: SUMMATIVE ASSESSMENT 2 For each of the following items, indicate which part will be affected. Depreciation Expense. 1. 2. Proceeds from the sale of equipment used in the business. The Loss on the Sale of Equipment in Question #2. 3. 4. Declaration and payment of dividends on company's stock. Gain on the Sale of Automobile formerly used in the business. The proceeds from the sale of the automobile in Item #5. An increase in the balance in a retailer's Merchandise Inventory. An increase in the balance in Accounts Payable. 5. 6. 7. 8. 9. 10. Retirement of long-term Bonds Payable. Purchase of Treasury Stock (company's own stock). Cash flow statement: Direct method sheet: You are required to prepare a template of how a complete cash flow statement will look on the direct method. List at least 2 advantages and 2 disadvantages of using the direct method when it co cash flow statements.

For each of the following items, indicate which part will be affected. 1. Depreciation Expense. 2. Proceeds from the sale of equipment used in the business. 3. The Loss on the Sale of Equipment in Question \#2. 4. Declaration and payment of dividends on company's stock. 5. Gain on the Sale of Automobile formerly used in the business. 6. The proceeds from the sale of the automobile in Item \#5. 7. An increase in the balance in a retailer's Merchandise Inventory. 8. An increase in the balance in Accounts Payable. 9. Retirement of long-term Bonds Payable. 10. Purchase of Treasury Stock (company's own stock). Cash flow statement: Direct method sheet: You are required to prepare a template of how a complete cash flow statement will look on the direct method. List at least 2 advantages and 2 disadvantages of using the direct method when it cc cash flow statements