Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the following data: Net income Depreciation expense $265,700 79,800 Loss on disposal of equipment 38,400 Increase in accounts receivable 26,800 Increase in accounts payable 10,200 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Increase in accounts payable Net cash flow from operating activities Common stock transactions on the statement of cash flows Jones Industries received $600,000 from issuing shares of its common stock and $400,000 from issuing bonds. During the year, Jones Industries also paid dividends of $60,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Cash received from issuing common stock Part of cash flows from financing activities Cash received from issuing bonds Cash paid for dividends Part of cash flows from financing activities Amount $ $ Part of cash flows from financing activities Land Transactions on the Statement of Cash Flows IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Gain on sale of land Action Deducted from net income Cash received from sale of land Part of cash flows from investing activities Cash paid for purchase of land Part of cash flows from investing activities Amount Adjustments to Net Income-Indirect Method Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 while $3,800 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $22,420 from the sale of investments. Reconcile a net income of $286,900 to net cash flow from operating activities. Changes in Current Operating Assets and Liabilities-Indirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable Inventory Accounts payable Dividends payable $13,500 $13,000 50,400 51,100 27,700 19,000 26,000 20,000 Adjust net income of $89,600 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.