Finch Company engaged in the following transactions for Year 1. The beginning cash balance was $28,500 and the ending cash balance was $66,860 1. Sales on account were $283,600. The beginning receivables balance was $94,200 and the ending balance was $76,800. 2. Salaries expense for the period was $50,560. The beginning salaries payable balance was $2,695 and the ending balance was $1,540. 3. Other operating expenses for the period were $129,270. The beginning other operating expenses payable balance was $4,080 and the ending balance was $7,707 4. Recorded $19,910 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $13,620 and $33,530, respectively. 5. The Equipment account had beginning and ending balances of $205,960 and $240,160, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $49,500 and $152,000, respectively. There were no payoffs of notes during the period. 7. There was $5,609 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,334 and $889, respectively. 8. The beginning and ending Merchandise Inventory account balances were $92,810 and $111,372, respectively. The company sold merchandise with a cost of $155.222 (cost of goods sold for the period was $155,222). The beginning and ending balances in the Accounts Payable account were $9,580 and $11,592, respectively. 9. The beginning and ending balances in the Notes Receivable account were $5,500 and $10,700, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period, 10. The beginning and ending balances in the Common Stock account were $98,000 and $115,000, respectively. The increase was caused by the issue of common stock for cash. 11. Land had beginning and ending balances of $49,100 and $36,642, respectively. Land that cost $12.458 was sold for $9.190. resulting in a loss of $3,268. 12. The tax expense for the period was $7,480. The Taxes Payable account had a $830 beginning balance and a $764 ending balance. 13. The Investments account had beginning and ending balances of $26,200 and $29,400, respectively. The company purchased Required a. 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 Finch 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. Return to 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 Finch 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 Decrease Decrease $ 283.600 Increase in Accounts receivable account in Salaries payable account in Other operating expenses I payable in Depreciation expense in Equipment account in Notes payable account in Interest payable account in Accounts payable in Notes receivable in Common stock account in Land account in Taxes payable account in Investments account No effect Increase Increase Decrease Increase Increase Increase Decrease Decrease Increase Statement of cash flows Operating activities Operating activities Operating activities No effect Investing activities Financing activities Operating activities Operating activities Investing activities Financing activities Investing activities Operating activities Investing activities 8. 9. 10. 12. 13 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.). FINCH COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash Flows From Operating Activities: Cash Receipts from: Total cash inflows Cash Payments for: Total cash outflows Cash Flows from Investing Activities: Total cash outflows Cash Flows from Investing Activities: ces Cash Flows from Financing Activities: Ending cash balance Check my word HH4 + 4 + H+ v 49 48 47 46 45 PHIM 6. The beginning and ending balances in the Notes Payable account were $49,500 and $152,000, respectively. There were no payoffs of notes during the period. 7. There was $5,609 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,334 and $889, respectively. 8. The beginning and ending Merchandise Inventory account balances were $92,810 and $111,372, respectively. The company sold merchandise with a cost of $155,222 (cost of goods sold for the period was $155,222). The beginning and ending balances in the Accounts Payable account were $9,580 and $11,592, respectively. 9. The beginning and ending balances in the Notes Receivable account were $5,500 and $10,700, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period. 10. The beginning and ending balances in the Common Stock account were $98,000 and $115,000, respectively. The increase was caused by the issue of common stock for cash. 11. Land had beginning and ending balances of $49,100 and $36,642, respectively. Land that cost $12,458 was sold for $9,190, resulting in a loss of $3,268. 12. The tax expense for the period was $7,480. The Taxes Payable account had a $830 beginning balance and a $764 ending balance. 13. The Investments account had beginning and ending balances of $26,200 and $29,400, respectively. The company purchased investments for $17,200 cash during the period, and investments that cost $14,000 were sold for $28,000, resulting in a $10,800 gain