1. Classification of Cash Flows

2. A review of the financial records for Rogers, Inc., uncovered the following items:

   Rogers uses the indirect method to prepare the operating activities of its statement of cash flows.

   Required:

   Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. (question is on the left answer choices on the right

   a.	Collected accounts receivable	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   b.	Paid cash to purchase equipment	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   c.	Received cash from the issuance of bonds	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   d.	Paid interest on long-term debt	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   e.	Sold equipment at book value	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   f.	Depreciation on equipment	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   g.	Issued common stock for land	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   h.	Paid rent on building for the current period	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   i.	Paid cash to settle an account payable	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   j.	Declared and paid dividends to stockholders	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   k.	Received cash dividend on investment	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   l.	Repaid the principal amount of long-term debt	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   m.	Amortization of a copyright	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale
   n.	Sold a long-term investment at a gain	Investing activity Financing activity Operating activity Noncash investing and financing activity Investing for the cash received from the sale; Operating for the gain on the sale

   2)

3. Reporting Net Cash Flow from Operating Activities

   The following information is available for Bernard Corporation for 2019:

   Net income	$218,000
   Decrease in accounts receivable	6,600
   Increase in inventory	18,300
   Decrease in prepaid rent	2,100
   Increase in salaries payable	4,410
   Decrease in income taxes payable	4,270
   Increase in notes payable (due 2023)	50,000
   Depreciation expense	44,700
   Loss on disposal of equipment	11,000

   Required:

   Compute the net cash flows from operating activities using the indirect method