ED Vernon Company engaged in the following transactions for the year 2016. The beginning cash balance was $28,400 and the ending cash balance was $60,468 1. Sales on account were $282,400. The beginning receivables balance was $94,000 and the ending balance was $76,200 2. Salaries expense for the period was $59,990. The beginning salaries payable balance was $3,325 and the ending balance was $1,900. 3. Other operating expenses for the period were $122,450. The beginning other operating expenses payable balance was $4,030 and the ending balance was $7,613 4. Recorded $19,440 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $13,940 and $33,380, respectively 5. The Equipment account had beginning and ending balances of $206,570 and $240,470, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $45,500 and $140,500, respectively. There were no payoffs of notes during the period 7. There was $6,028 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,419 and $946, respectively 8. The beginning and ending Merchandise Inventory account balances were $90,830 and $108,996, respectively. The company sold merchandise with a cost of $150,133 (cost of goods sold for the period was $150,133). The beginning and ending balances in the Accounts Payable account were $9,310 and $11,265, respectively. 9. The beginning and ending balances in the Notes Recelvable were $5,400 and $10,700, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period 0. "The beginning and ending balances in the Common Stock account were $96,000 and $114,000, respectively. The increase was caused by the issue of common stock for cash. 11. Land had beginning and ending balances of $45,300 and $32,869, respectively. Land that cost $12,431 was sold for $9,17O, resulting in a loss of $3,261 2. The tax expense for the period was $7,990. The Taxes Payable account had a $1,070 beginning balance and an $985 ending balance 3. The Investments account had beginning and ending balances of $27,200 and $31,100, respectively. The company purchased investments for $18,900 cash during the period, and investments that cost $15,000 were sold for $29,000, resulting in a $14,000 gain. Required a. Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activiies section of a statement of cash flows. Assume Vernon Company uses the direct method for showing net cash flow from operating activities. b. Prepare a statement of cash flows using the direct method Complete this question by entering your answers in the tabs below Required A Required B Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume Vernon Company uses the direct method for showing net cash flow from operating activities. (Any cash outflow should be indicated by a minus sign. Select "No effect" if there is no effect (i.e., zero variance).) Transactions Amount Statement of cash flows in Accounts receivable account in Salaries payable account 3. in Other operating expenses payable in Depreciation expense in Equipment account 5. in Notes payable account in Interest payable account 8. in Accounts payable in Nates receivable 2 3 Required A Required B Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume Vernon Company uses the direct method for showing net cash flow from operating activities. (Any cash outflow should be indicated by a minus sign. Select "No effect" if there is no effect (i.e., zero variance).) 2 Transactions Amount Statement of cash flows in Accounts receivable account in Salaries payable account in Other operating expenses payable in Depreciation expense in Equipment account in Notes payable account in Interest payable account in Accounts payable in Nates receivable in Common stock account in Taxes payable acoount in Investments account Required B> Required A 23 Complete this question by entering your answers in the tabs below Required A Required B Prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) VERNON COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash Flows From Operating Activities: Cash Receipts from: Total cash inflows Cash Payments for: Total cash outflows ED 23 Total cash outflows Cash Flows from Investing Activities: Cash Flows from Financing Activities: Ending cash balance