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help please Instructions: Compute free cash flow for Dugan Enterprises. Problem #2 Part A Instructions Assuming a statement of cash flows is prepared.(indirect methos) indicate
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Instructions: Compute free cash flow for Dugan Enterprises. Problem #2 Part A Instructions Assuming a statement of cash flows is prepared.(indirect methos) indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows. Code Cash Flows from Operating Activities Add to Net Income Deduct from Net Income Cash Flows from Investing Activities IA Cash Flows from Financing Activities FA Category 1. Depreciation expense recorded for the period. 2. Building was purchased for cash. 3. Bonds payable were acquired and retired at their carrying value. 4. Accounts payable decreased during the period. 5. Prepaid expenses decreased during the period. 6. Merchandise inventory increased during the period. 7. Treasury stock was acquired for cash. 8. Land is sold for cash at an amount equal to book value. 9. Patent amortization expense recorded for a period. 10. Common stock is issued for cash at an amount above par value. Problem #2 Part B Instructions Classify each transaction as either (a) an operating activity. (b) an investing activity. (c) a financing activity, or (d) a noncash investing and financing activity and place your answer in the blank beside each number. Paid employee wages. Converted bonds payable to common stock. Acquired long-term investment with cash. Sold buildings and equipment for cash. Sold merchandise to customers. Collected accounts receivable. Declared and paid dividends on common stock. Sold long-term investments for cashStep by Step Solution
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