Long Test 5 ACC 211 PART 2: a financing activity, or (d) a noncash investing and financing activity. (10 points) Classifly each transaction as either (a) an operating activty. (b) an Investing activity. (e) Selected transactions for the Ecker Company are listed below 1. Collected accounts recelvable. 2. Declared and paid dividends on common stock. 3. Issued Common stocks. 4. Decrease in Accounts Payable 5. Paid five year note payable. 6. Paid employee wages. 7. Equipment is purchased by signing a 3-year, 10% note payable. 8. Acquired equipment with cash. 9. Sold buildings and equipment for cash. 10. Sold merchandise to customers. PART 3 Preparation of Installment payment schedule (15 points) Hello Corp. issues a $410,000, 12%, 5year note on December 31, 2017. The terms provide for annual installment payments of $113,738 Period Cash Payment Interest Expense Reduction of Principal Balance PART 4: PREPARATION OF CASH FLOW STATEMENT FOR RED CORPORATION (15 points) 2017 55,500.00 48,000.00 61,500.00 198,000.00 2016 43,500.00 42,000.00 57,000.00 166,500.00 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated (61,500.00) 301,500.00 54,000.00 1,800.00 57,000.00 132,900.00 55,800.00 301,500.00 Total Assets 255,000.00 40,500.00 2,100.00 66,000.00 108,900.00 37,500.00 Accounts payable Accrued wage expense Note payable, long-term Common Stocks Total Liabilities and Equity Page 2 of 3 Long Test5 ACC 211 Income Statement Sales Cost of Goods Sold Gross Profit Depreciation Expense Other Expenses Net Income 180,000.00 105,000.00 75,000.00 7,500.00 49,200.00 18,300.00 Composition of Retained Earnings Retained Earnings, Beg Add: Net Income Less: Dividends Retained Earnings, end 37,500.00 18,300.00 55,800.00 END