Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 $18,000 $17,600 71,400 72,100 24,700 23,000 17,000 18,000 Adjust net income of $83,700 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. 85,100 X Accounts receivable Inventory Accounts payable Dividends payable Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $210,000 of bonds, on which there was $2,100 of unamortized discount, for $218,000. b. Sold 7,000 shares of $30 par common stock for $75 per share. c. Sold equipment with a book value of $63,000 for $90,700. d. Purchased land for $513,000 cash. e. Purchased a building by paying $56,000 cash and issuing a $110,000 mortgage note payable. f. Sold a new issue of $300,000 of bonds at 97. g. Purchased 4,000 shares of $25 par common stock as treasury stock at $49 per share. h. Paid dividends of $2.30 per share. There were 19,000 shares issued and 3,000 shares of treasury stock. Effect Amount Cash payment 218,000 Cash receipt Cash receipt Cash payment Cash payment Cash receipt a. b. C. d. e. f. 9. h. Cash payment Cash payment Feedback Check My Work 90,700 513,000