Question 1) The income statement disclosed the following items for the year:

• Depreciation expense: $55,900
• Gain on disposal of equipment: 32,630
• Net income: 459,800

. The changes in the current asset and liability accounts for the year are as follows:

**Decreases have parentheses around them**

• Accounts receivable: $8,710
• Inventory: (4,960)
• Prepaid Insurance: (1,860)
• Accounts payable: (5,910)
• Income taxes payable: 1,860
• Dividends payable: 1,310

Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or negative adjustments: (Picture below)

Question 2) On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: (Picture below)

Question 3) On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: (Picture below)

Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Il 10000 Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flow from operating activities Reporting Land Transactions on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 1,165,000 Mar. 12 Purchased for cash 396,000 1,561,000 Oct. 4 Sold for $217,000 186,000 1,375,000 Section of Statement of Item Cash Flows Added or Deducted Amount Mar. 12: Purchase of fixed asset Investing activities section Deducted $ Oct. 4: Sale of fixed asset Investing activities section Added $ Gain on sale of fixed asset (assume the indirect method) Operating activities section Deducted $ Reporting Land Acquisition for Cash and Mortgage Note on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 208,400 Feb. 10 Purchased for cash 323,000 531,400 Nov. 20 Purchased with long-term mortgage note 430,400 961,800 Item Section of Statement of Cash Flows Added or Deducted Amount Purchase of land for cash Investing activities section Deducted Purchase of land by issuing long-term mortgage note Separate schedule Report only