Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Duke Enterprises.

During the year, 50,000 shares of preferred stock with a par value of $100 a share were issued for $101 a share.

During the year, treasury stock costing $123,000 was sold.

Equipment that had cost $70,000 2 years before and was being depreciated on a straight-line basis over 6 years with a $10,000 estimated scrap value was sold for $25,000.

(d) Goodwill impairment was $500,000.

(e) Warranty-related payments of $83,600 were charged against accrued warranty expenses.

(f) 6-month U.S. Treasury bills were sold for $210,000. The company uses a cash and cash-equivalent basis for its cash flow statement.

(g) The company issued $600,000 in bonds payable to acquire land.

(h) The company reported net income for the year of $176,000. Depreciation amounted to $69,000, and a loss of $45,000 was reported on the sale of an equity investment.

Instructions

State where each item is to be shown in the statement of cash flows, if at all.