Practice Question Two The following information was taken from the financial records of the W Company. a) The board of directors declared cash dividends totaling N240,000 during the current year. The comparative balance sheet indicates dividends payable of N50,000 at the beginning of the year and N60,000 at the end of the year. b) Office equipment, which had cost N245,000 and on which accumulated depreciation totaled N95,000 on the date of sale, was sold for N130,000 during the year. c) Delivery equipment, which had cost N39,000 and on which accumulated depreciation totaled N23,000 on the date of sale, was sold for N20,000 during the year. d) The company issued 5,000 shares of N10 par ordinary shares for N50 per share. e) The company purchased land with a mortgage note payable. f) Depreciation expense reported on the income statement was N55,000. g) Bonds Payable of N60,000 were retired. Required: For each of the situations indicate the items to be reported on the statement of cash flows, the section of the statement in which the item would appear and the amount to be reported