Part 1:

For each of the following items listed below, indicate how it would be reported on the Statement of Cash Flows of Acme Company using the following legend (assume the company uses the DIRECT METHOD to report cash from operations):

IO: Cash provided by Operating Activities

OO: Cash used in Operating Activities

II: Cash provided by Investing Activities

OI: Cash used for Investing Activities

IF: Cash provided by Financing Activites

OF: Cash used for Financing Activities

NR: Does not appear on the Statement of Cash Flows

___ 1. Purchase Acme Co common stock (purchase stock of own company) for $100,00

___2. Sold truck with book value of $7,000 for $3,000

___3. Declared cash dividends on common stock of $15,000, to be paid next year

___4. Redemption of company bonds for $95,000; the bonds had a carrying and face value of $100,000 (i.e. we retired - paid off- debt)

___5. Recorded $49,000 of amortization for an intangible asset

___6. Purchased a new truck for $29,000; installment purchase, no cash down payment

___7. Increase in accounts receivable from beginning to end of year of $12,000

___8. Collected $26,000 in cash from customers' payments on account receivables. Of that amount $20,000 related to sales made in the previous year

Part 2:

For each of the following items listed below, indicate how it would be reported on the Statement of Cash Flows of Acme Company using the following legend (assume the company uses the INDIRECT METHOD for operating activities):

A: Operating activity-add to net income

D: Operating activity-deduct to net income

II: Cash provided by Investing Activities

OI: Cash used for Investing Activities

IF: Cash provided by Financing Activites

OF: Cash used for Financing Activities

NR: Does not appear on the Statement of Cash Flows

___ 1. Purchase Acme Co common stock (purchase stock of own company) for $100,00

___2. Sold truck with book value of $7,000 for $3,000

___3. Declared cash dividends on common stock of $15,000, to be paid next year

___4. Redemption of company bonds for $95,000; the bonds had a carrying and face value of $100,000 (i.e. we retired - paid off- debt)

___5. Recorded $49,000 of amortization for an intangible asset

___6. Purchased a new truck for $29,000; installment purchase, no cash down payment

___7. Increase in accounts receivable from beginning to end of year of $12,000

___8. Collected $26,000 in cash from customers' payments on account receivables. Of that amount $20,000 related to sales made in the previous year