Questions 1

For the following events which occurred in 2020, please show how (positive or negative and how much with the description of the event) and where they will be reported on the skeleton outline of the cash flow statement at the bottom of this page:

1. Accounts Payable decreased by $18,000 this year
2. Paid off a $6,000 note payable on the due date (ignore the interest on the note).
3. Sold a patent for $80,000 in cash. The patent had a book value of $10,000.
4. Sold $200,000 of 10 year, 4% bonds for 92 in cash.
5. Purchased 500 shares of $2 par common stock of Another Company for $18 per share and plan to hold these shares for at least three years
6. Recorded $1,600 of amortization of a discount on bonds payable
7. Purchased 1,000 shares of your own $10 par common stock for $21 per share and plan to resell these shares sometime next year.

Homework Company

Statement of Cash Flows

For the Year Ended December 31, 2020

Cash Flow from Operating Activities

Net Income

Non-Cash Expenses

Changes in Current Accounts

Gains or Losses

Net Cash Flow from Operating Activities

Cash Flow from Investing Activities

Inflows

Outflows

Net Cash Flow from Investing Activities

Cash Flow from Financing Activities

Inflows

Outflows

Net Cash Flow from Financing Activities Total Cash Flow

Beginning Cash Balance

Ending Cash Balance

Other Investing and Financing Transactions not Affecting Cash