I. Selected transactions of Mogolln Company are listed below.

1. Common stock is sold for cash above per value.

2. Bonds payable are issued for cash at a discount.

3. Interest receivable on a short-term note receivable is collected.

4. Land is sold for cash at book value.

5. Accounts payable are paid in cash.

6. Equipment is purchased by signing a 3-year. 10% note payable.

7. Cash dividends on common stock are declared and paid.

8. 100 shares of Mogolln common stock are purchased for cash.

9. Merchandise is sold to customers for cash.

10. Bonds payable are converted into common stock.

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.

1. _____ 6. _____

2. _____ 7. _____

3. _____ 8. _____

4. _____ 9. _____

5. _____ 10. _____

II. A comparative balance sheet for Anselmo Chilas Company appears below:

Anselmo Chilas Company

Comparative Balance Sheet

Dec. 31, 2013 Dec. 31, 2014

Assets

Cash $ 23,000 $ 10,000

Accounts receivable 18,000 14,000

Inventory 27,000 18,000

Prepaid expenses 6,000 9,000

Long-term investments -0- 18,000

Equipment 60,000 32,000

Accumulated depreciationequipment (18,000) (14,000)

Total assets $116,000 $ 87,000

Liabilities and Stockholders' Equity

Accounts payable $ 17,000 $7,000

Bonds payable 37,000 47,000

Common stock 40,000 23,000

Retained earnings 22,000 10,000

Total liabilities and stockholders' equity $116,000 $ 87,000

Additional information:

1. Net income for the year ending December 31, 2014 was $24,000.

2. Cash dividends of $12,000 were declared and paid during the year.

3. Long-term investments that had a cost of $18,000 were sold for $16,000.

4. Sales for 2008 were $120,000.

INSTRUCTIONS

Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.