Cash Flow Analysis

State how each of the following items would be reflected on a statement of cash flows.

• (a) Securities classified as available for sale were purchased for $4,200.
• (b) Buildings were acquired for $210,000, the company paying $60,000 cash and signing an 11% mortgage note, payable in five years, for the balance.
• (c) Cash of $54,200 was paid to purchase a business whose assets consisted of inventory, $16,700; furniture and fixtures, $8,400; land and buildings, $20,100; and goodwill, $9,000.
• (d) A cash dividend of $2,600 was declared in the current period, payable at the beginning of the next period.
• (e) Accounts Payable shows a decrease for the period of $1,250.