General Directions: Using the information provided, classify the activities done by Delicious Food Co. as being operating, investing or financing activities. Apply these classifications and the information in the previous financial statements to create a statement of cash flows for the company using both the indirect and the direct methods.

"In addition to the data found on the financial statements, the following transactions occurred for Delicious Food Co. between the previous and current year. - Purchased new computer equipment for the office in the amount of $48,000 - Sold unused office furniture with a value of $9,000 for the amount of $7500 - Attained a short term note payable in the amount of $65,000" t

TASK 1: For each accounting activity described below, determine if it is an operating activity, investing activity, or a financing activity. Use the drop down box to select your response.

TASK 2: perform direct method and indirect method

Activity Classification Purchased new computer equipment for the office in the amount of $48,000 Collected $500 in finance charges from a client's late payment Prepaid liability insurance for the year Sold unused office furniture in the amount of $7,500 Issued payroll for current pay cycle Collected $12,000 prepayment for client services Reimbursed employee for travel to meet with a client Attained a short term note payable in the amount of $65,000 Balance Sheet Delicious Food Co. Ci In Fi N1