PA6. LO 16.3 Use the following information from Eiffel Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Balance Sheets Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Gain on Sale of Plant Assets Net Income 2018 Income Statement $ 299.000 (135,000) (27,000) (17,000) 16.500 136,500 Accounts Receivable Inventory Accounts Payable Accrued Liabilities Dec 31, 2018 545,300 1.600 22.500 900 Dec 31, 2017 $43.400 1.800 21.250 1.150 Accounts Receivable Inventory Accounts Payable Accrued Liabilities Solution Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Depreciation Expense Gain on Sale of Plant Assets Changes in Current Assets and Liabilities: Accounts Receivable Inventory Accounts Payable Accrued Liabilities Net cash flows from operating activities PAT. LO 16.3 Analysis of Forest Company's accounts revealed the following activity for its Land account, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a cash source, cash use, or noncash transaction. Account balance, beginning of year Purchase of land this year, for cash Purchase of land this year, with note payable Account balance, end of year Solution Land $220,000 95,000 75,000 390,000