Harley-Davidson is a leading manufacturer of heavy-weight motorcycles. For each of the following recent transactions, indicate whether net cash inflows (outflows) from operating activities, investing activities, or financing activities are affected and whether the effect is an inflow or outflow, or use No effect if the transaction has no effect on cash. (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.) 1. Purchased raw materials inventory on account. 2. Prepaid rent for the following period. 3. Purchased new equipment by signing a three-year note. 4. Recorded an adjusting entry for expiration of a prepaid expense. 5. Recorded and paid income taxes to the federal government. 6. Purchased investment securities for cash. 7. Issued common stock for cash. 8. Collected payments on account from customers. 9. Sold equipment for cash equal to its net book value. 10. Issued long-term debt for cash. Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 66,950 $ 66,200 25,950 19,750 25,950 214,150 (63,400) $ 263,400 $ 13,500 5,400 64,000 104,200 20,800 152,800 (47,950) $ 217,800 $ 23,800 6,000 76,200 67,800 76,300 44,000 $ 263,400 $ 217,800 $ 213,000 110,000 15,450 44,800 $ 42,750 Additional Data: a. Bought equipment for cash, $61,350. b. Paid $12,200 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $10,450 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: 0 0 0 0 $ 0 Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities: Net income Purchase of property, plant, and equipment Borrowings under line of credit (bank) Proceeds from issuance of stock Cash received from customers Payments to reduce long-term debt Sale of marketable securities Proceeds from sale of property and equipment Dividends paid Interest paid Purchase of treasury stock (stock repurchase) $ 5,143 2,087 1,130 26 37,175 48 222 6,888 283 97 2,582 Required: Based on this information, present the investing and financing activities sections of the cash flow statement. Note: List cash outflows as negative amounts. OERING'S FURNITURE CORPORATION Statement of Cash Flows (Partial) Cash flows from investing activities: $ 0 Cash flows from financing activities: $ 0