Chang Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Changs 2012 and 2011 year-end balance sheets.

Account Title	2012	2011
Accounts receivable	$28,000	$32,000
Prepaid rent	1,800	1,500
Interest receivable	700	500
Accounts payable	8,500	9,800
Salaries payable	3,600	3,200
Unearned revenue	4,000	6,000

The income statement contained a $1,200 gain on the sale of equipment, a $900 loss on the sale of land, and $2,500 of depreciation expense. Net income for the period was $52,000.

Required:

Prepare the operating activities section of the statement of cash flows. (Amounts in parentheses do not require a minus sign in front of them. Omit the "$" sign in your response.)

Cash Flows from Operating Activities
(Click to select)Net incomeNet loss		$
Add:	(Click to select)Decrease in accounts receivableGain on sale of equipmentDecrease in unearned revenueDecrease in accounts payableGain on sale of landIncrease in interest receivableIncrease in prepaid rent
	(Click to select)Gain on sale of equipmentDecrease in unearned revenueIncrease in prepaid rentGain on sale of landIncrease in interest receivableIncrease in salaries payableDecrease in accounts payable
	(Click to select)Depreciation expenseDecrease in accounts payableIncrease in interest receivableGain on sale of equipmentGain on sale of landIncrease in prepaid rentDecrease in unearned revenue
	(Click to select)Gain on sale of landGain on sale of equipmentIncrease in prepaid rentDecrease in unearned revenueIncrease in interest receivableLoss on sale of landDecrease in accounts payable
Deduct:	(Click to select)Increase in salaries payableIncrease in unearned revenueLoss on sale of equipmentDecrease in accounts payableGain on sale of landIncrease in prepaid rentIncrease in accounts receivable	()
	(Click to select)Gain on sale of landIncrease in salaries payableDecrease in accounts payableIncrease in interest receivableIncrease in unearned revenueDecrease in accounts receivableLoss on sale of equipment	()
	(Click to select)Decrease in accounts receivableDecrease in prepaid rentDecrease in accounts payableLoss on sale of equipmentIncrease in salaries payableIncrease in unearned revenueDecrease in interest receivable	()
	(Click to select)Decrease in prepaid rentIncrease in accounts payableDecrease in unearned revenueIncrease in salaries payableLoss on sale of equipmentDecrease in accounts receivableDecrease in interest receivable	()
	(Click to select)Increase in accounts payableDecrease in interest receivableGain on sale of equipmentIncrease in salaries payableDecrease in prepaid rentIncrease in unearned revenueDecrease in accounts receivable	()
Net cash inflow from operating activities		$

2.)

On January 1, 2011, Webber Company had a balance of $278,000 in its Land account. During 2011, Webber sold land that had cost $94,000 for $120,000 cash. The balance in the Land account on December 31, 2011, was $300,000.

Required:
(a)	Determine the cash outflow for the purchase of land during 2011. (Input the amount as positive value. Omit the "$" sign in your response.)

Cash outflow

$

(b)	Prepare the investing activities section of the 2011 statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Cash Flow From Investing Activities

(Click to select)Inflow for the purchase of landInflow from ownerOutflow for the purchase of landInflow from the sale of landOutflow from the sale of land

$

(Click to select)Inflow for the purchase of landInflow from ownerOutflow from the sale of landInflow from the sale of landOutflow for the purchase of land

Net cash inflow from investing activities

$

3.)

[The following information applies to the questions displayed below.]

The following accounts and corresponding balances were drawn from Winston Companys 2012 and 2011 year-end balance sheets.

Account Title	2012		2011
Investment securities	$	102,000	$	112,000
Machinery		520,000		425,000
Land		140,000		90,000

Other information drawn from the accounting records:

1.	Winston incurred a $2,000 loss on the sale of investment securities during 2012.
2.	Old machinery with a book value of $5,000 (cost of $25,000 minus accumulated depreciation of $20,000) was sold. The income statement showed a gain on the sale of machinery of $4,000.
3.	Winston did not sell land during the year.

3.

value: 1.00 points

Required information

Required:

(a)	Compute the amount of cash flow associated with the sale of investment securities. (Omit the "$" sign in your response.)

Cost of investment securities sold

$

References

eBook & Resources

WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.

Check my work

4.

value: 1.00 points

Required information

(b)	Compute the amount of cash flow associated with the purchase of machinery. (Input the amount as positive value. Omit the "$" sign in your response.)

Cost of machinery purchased

$

References

eBook & Resources

WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.

Check my work

5.

value: 1.00 points

Required information

(c)	Compute the amount of cash flow associated with the sale of machinery. (Omit the "$" sign in your response.)

The sale of machinery

$

References

eBook & Resources

WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.

Check my work

6.

value: 1.00 points

Required information

(d)	Compute the amount of cash flow associated with the purchase of land. (Input the amount as positive value. Omit the "$" sign in your response.)

Cost of land purchased

$

References

eBook & Resources

WorksheetDifficulty: MediumLearning Objective: 12-03 Prepare the investing activities section of a statement of cash flows.

Check my work

7.

value: 1.00 points

Required information

(e)	Prepare the investing activities section of the statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Winston Company Statement of Cash Flows For the Year Ended 2012

Cash flows from investing activities:

(Click to select)Outflow to purchase landInflow to purchase machineryInflow from sale of investment securitiesInflow from sale of machineryOutflow from sale of investment securitiesOutflow to purchase machineryOutflow from sale of machineryInflow to purchase land

$

(Click to select)Inflow to purchase landInflow from sale of investment securitiesOutflow to purchase landOutflow from sale of machineryInflow from sale of machineryInflow to purchase machineryOutflow from sale of investment securitiesOutflow to purchase machinery

(Click to select)Inflow from sale of investment securitiesOutflow to purchase machineryInflow from sale of machineryOutflow from sale of machineryOutflow to purchase landInflow to purchase landInflow to purchase machineryOutflow from sale of investment securities

(Click to select)Outflow to purchase landInflow from sale of machineryOutflow from sale of machineryInflow to purchase landInflow to purchase machineryInflow from sale of investment securitiesOutflow from sale of investment securitiesOutflow to purchase machinery

Net cash outflow from investing activities

$

4.)

The following accounts and corresponding balances were drawn from Berry Companys 2012 and 2011 year-end balance sheets.

Account Title	2012		2011
Bonds payable	$	210,000	$	300,000
Common stock		370,000		275,000

Other information drawn from the accounting records:

1.	Dividends paid during the period amounted to $30,000.
2.	There were no bond liabilities issued during the period.

Required:
(a)	Compute the amount of cash flow associated with the repayment of bond liabilities. (Input the amount as positive value. Omit the "$" sign in your response.)

Payment of bond liability

$

(b)	Compute the amount of cash flow associated with the issue of common stock. (Omit the "$" sign in your response.)

Common stock issued

$

(c)	Prepare the financing activities section of the statement of cash flows. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Berry Company Statement of Cash Flows For the Year Ended 2012

Cash flows from financing activities:

(Click to select)Inflow from the issue of common stockOutflow for the repayment of bondsOutflow for the payment of dividendsInflow for the repayment of bondsInflow from owner

$

(Click to select)Inflow for the repayment of bondsOutflow for the repayment of bondsOutflow for the payment of dividendsInflow from the issue of common stockInflow from owner

(Click to select)Inflow for the repayment of bondsOutflow for the repayment of bondsInflow from ownerOutflow for the payment of dividendsInflow from the issue of common stock

Net Cash Outflow from Financing Activities

$

5.)

The following information can be obtained by examining a company's balance sheet and income statement information.

a.	Decreases in noncash current asset account balances.
b.	Cash outflows to repay long-term debt.
c.	Increases in noncash current asset account balances.
d.	Cash outflows made to purchase long-term assets.
e.	Decreases in current liability account balances.
f.	Noncash expenses (depreciation).
g.	Cash outflows to purchase treasury stock.
h.	Gains recognized on the sale of long-term assets.
i.	Cash outflows to pay dividends.
j.	Cash inflows from the issue of common stock.
k.	Cash inflows from the sale of long-term assets.
l.	Increases in current liability account balances.
m.	Cash inflows from the issue of long-term debt.
n.	Losses incurred from the sale of long-term assets.

Required:

For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would be added or subtracted when determining the net cash flow from operating, investing, or financing activities. Assume the indirect method is used to prepare the operating activities section of the statement of cash flows. The first item has been completed as an example.

Item	Type of Activity	Add or Subtract
a.	Operating	Add
b.	(Click to select)OperatingInvestingFinancing	(Click to select)AddSubtract
c.	(Click to select)InvestingFinancingOperating	(Click to select)AddSubtract
d.	(Click to select)OperatingFinancingInvesting	(Click to select)SubtractAdd
e.	(Click to select)InvestingFinancingOperating	(Click to select)AddSubtract
f.	(Click to select)OperatingInvestingFinancing	(Click to select)SubtractAdd
g.	(Click to select)InvestingOperatingFinancing	(Click to select)AddSubtract
h.	(Click to select)InvestingOperatingFinancing	(Click to select)AddSubtract
i.	(Click to select)FinancingInvestingOperating	(Click to select)AddSubtract
j.	(Click to select)InvestingFinancingOperating	(Click to select)SubtractAdd
k.	(Click to select)FinancingOperatingInvesting	(Click to select)AddSubtract
l.	(Click to select)InvestingOperatingFinancing	(Click to select)SubtractAdd
m.	(Click to select)OperatingFinancingInvesting	(Click to select)SubtractAdd
n.	(Click to select)OperatingInvestingFinancing	(Click to select)AddSubtract