is used? Impact of Cash and Stock Dividends LOL.3 The account balances for the noncash current assets and current liabilities of Abraham Music Company are as follows: December 31 2011 2012 Dividends payable $50,000 $ 40,000 Retained earnings 545,000 375,000 Other information for 2011: a. Abraham reported $375,000 in net income for 2011. b. The company declared and distributed a stock dividend of $85,000 during the year. c. The company declared cash dividends at the end of each quarter and paid them within the first 30 days of the next quarter. Required A. Determine the amount of cash dividends paid during the year for presentation in the financing activities section of the statement of cash flows. B. Should the stock dividend appear on a statement of cash flows? Explain your answer. 9. Investing Activities and Noncash Activities LO1,3 Van Buren Company acquires a piece of land by signing a $100,000 promissory note and making a $30,000 down payment. Required How should this transaction be reported on the statement of cash flows? 10. Cash Equivalents and Investing Activities LOI. 3 Van Patten, Inc., made two purchases during Septem- ber. One was a $25,000 certificate of deposit that ma- tures in 90 days. The other was a $50,000 investment in Microsoft common stock that will be held indefinitely Required How should each of these transactions be treated on the statement of cash flows? 11. Financing Activities LOI, 3 Walden Book Buyers buys 5,000 shares of its own common stock at $25 per share. The company pur- chases the shares as Treasury stock