ra Credit Problem Part I Complete cach of the columns on the table below, indicating in which section cach item would be reported on the statement of cash flows (operating, investing, or financing), the amount that would be reported, and whether the item would create an increase or decrease in cash. For item that affect more than one section of the statement, indicate all affected. Assume the indirect method of reporting cash flows from operating activities Effect on Cash Increase or Decrease Item Amount to Report Statement section Er Derverinti Ex. Depreciation of $15,000 for the period mora Operating $15,000 Increase 1. Issuance of common stock for $35,000 2. Retirement of $100,000 bonds payable at 97 3. Increase in accounts payable of $7,000 4. Purchase of long-term investments for $94,500 5. Dividends declared and paid of $8,300 6. Increase in prepaid rent of $4,500 7. Decrease in Inventory of $5,300 8. Purchase of equipment for $17,600 cash 9. Sale of land originally costing S134,000 for $130,000 Q Search Movies Search co Bing Google w Wikipedia Facebook Twitter in Linkedin The Weather Cha Yel TripAdvisor Extra Credit Problem # 4 O Reques 10.Decrease in taxes payable of $2,100 Part II Prepare a Statement of Cash Flows using the indirect method using the following data for Branch Co. for the current and preceding years ended December 31 Additional Information: Equipment costing $125,000 was purchased for cash and the land was sold for $15,000 . The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000 Cash Accounts receivable (net) Inventories Current year $ 65.000 78.000 106,500 Prior year $ 54,000 85.000 90.000 20.000 370.000 (58.000) $461,000 Equipment Accumulated depreciation 495.000 215.000 $$29.500 Accounts payable (merchandise creditor) Common stock, S10 par Paid-in capital in excess of par common stock Retained earnings $5.500 200,000 62,000 214.00 $529.500 $ 55,000 170.000 60,000 176,000 $461,000 Q Search Movies Search