CE 13-1

An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Guillen Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.

(a) Payment of interest on notes payable.

(b) Exchange of land for patent.

(c) Sale of building for an amount greater than book value.

(d) Payment of dividends.

(e) Depreciation.

(f) Receipt of dividends on investment in stock.

(g) Sales.

(h) Issuance of capital stock.

(i) Amortization of patent.

(j) Issuance of bonds for land.

(k) Purchase of land.

(l) Conversion of bonds into common stock.

(m) Sale of land for an amount less than cost.

(n) Retirement of bonds.

(o) Cost of goods sold.

(p) Purchase of treasury stock.

(q) Increase in accounts receivable.

Instructions

Indicate where each item should be reported in the statement of cash flows (indirect method), using these categories: (1) operating activity (added to net income), (2) operating activity (deducted from net income), (3) investing activity, (4) financing activity, (5) significant noncash investing and financing activity, or (6) not separately reported in the statement of cash flows. More than one number can be used per item.