Problem 1 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 o0 Cash used in Operating Activities ll Cash provided by Investing Activities Ol Cash used for Investing Activities IF Cash provided by Financing Activities OF Cash used for Financing Activities NR. Does Not Appear On the Statement of Cash Flows .chsig cme Co commen stock (ourchase tock of own company) for $100 .0o. 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. increase in accounts receivable from beginning to end of year of $12,000. Collected $26,000 in cash from customers' payments on account receivables. Of that amount $20,000 related to sales made in the previous year. 8. Part 2: For each of the following items listed below, indicate how it would be reported on the Statement of Cash Flows, using the following legend (assume activities) the company uses the INDIRECT METHOD for operating A Operating activity-add to net income D Operating activity-deduct from net income Il Cash provided by Investing Activities o Cash used for Investing Activities IF Cash provided by Financing Activities OF Cash used for Financing Activities NR. Does Not Appear On the Statement of Cash Flows 1. 2. 3. 4. Purchase Acme Co common stock (purchase stock of own company) for $100,000 Sold truck with book value of $7,000 for $3,000. Declared cash dividends on common stock of $15,000, to be paid next year! 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) S. Recorded $49,000 of amortization for an intangible asset.. 6. 7. 8. Purchased a new truck for $29,000; installment purchase, no cash down payment Increase in accounts receivable from beginning to end of year of $12,000. Collected $26,000 in cash from customers' payments on account receivables. Of that amount $20,000 related to sales made in the previous year