E5-25: Recording petty cash fund transactions Obj 6 Illustrate the effect on the accounts and financial statements of the following transactions:

a. Established a petty cash fund of $500. b. The amount of cash in the petty cash fund is now $45. Replenished the fund, based on the following summary of petty cash receipts: office supplies, $175; miscellaneous selling expense, $190; miscellaneous administrative expense, $90. E5-26: Variation in cash flows Obj 7 Mattel, Inc., designs, manufactures, and markets toy products worldwide. Mattels toys include Barbie fashion dolls and accessories, Hot Wheels, and Fisher-Price brands. For a recent year, Mattel reported the following net cash flows from operating activities (in thousands): First quarter ending March 31 $ 171,506 Second quarter ending June 30 (232,557) Third quarter ending September 30 (40,109) Fourth quarter December 31 986,778 Explain why Mattel reports negative net cash flows from operating activities during the first three quarters, yet reports positive cash flows for the fourth quarter and net positive cash flows for the year.