Problem 7

For each of the following transactions, indicate the dollar amount(s) and section(s) of the statement of cash flows that would be impacted by each of the following independent transactions: (You may assume either the direct or indirect method state which one you use).

1. Sold equipment for $6,000; the equipment originally cost $28,000 and had accumulated depreciation of $14,000.

2. Purchased land, paying $52,000 down and signing a note for $260,000.

3. Bonds with a face amount of $300,000 were sold at a discount of $40,000 on December 31 of the current year.