Exercise 16-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s). (More than one column may be used.) a Issued common stock for cash b. Accounts receivable decreased in the year c. Purchased treasury stock with cash Statement of Cash Flows Operating Investing Financing Activities Activities Activities Noncash Investing & Financing Activities Not Reported on Statement or in Notes d. Inventory increased in the year X e Accounts payable decreased in the year x f Retired bonds payable by issuing stock g. Income taxes payable increased in the year h. Sold land in return for cash Sold merchandise to customer for cash Received a cash dividend from investment X X x Exercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $1,768,000 Cost of goods sold 866,320 901,680 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 242,216 42,432 47,736 5,304 19,448 357,136 544,544 7,072 $ 551,616 Accounts receivable Inventory $ 19,900 increase Accounts payable 31,800 increase Salaries payable $ 12,225 decrease 5,050 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers 1,748,100 Payments for salaries Payments for salaries: (822,295) (237,166) ( Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 242,216 42,432 47,736 5,304 19,448 357,136 544,544 7,072 $ 551,616 Accounts receivable Inventory $ 19,900 increase Accounts payable 31,800 increase Salaries payable $ 12,225 decrease 5,050 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers 1,748,100 Payments for salaries Payments for salanes Rent expense Utilities expense 00000 Net cash provided by operating activibes (822,295) (237,166) (47.736) (19.448) $ 621,455