Reading 9 The Statement of Cash Flows GS S9-7 Williams Corporation accountants have assembled the following data for the year ended June 30, 2020: Net income S ? Cost of goods sold $116,000 Payment of dividends 6,100 Other operating expenses. 34,000 Proceeds from the issuance of common shares 18,000 Cheese of equipment with cash 42,000 Sales revenue ..... 225.000 Increase in current liabilities, *** 10.000 Increase in current assets other than cash 29,000 9 The Statement of Cash Flows 42.UUU Purchase or equipment WILT CAST Sales revenue 225,000 Increase in current liabilities 10,000 Increase in current assets other than cash 29,000 Payment of note payable ..... 30.000 Proceeds from sale of land .. 27,000 Repurchase of common shares 7,000 Depreciation expense 5,000 Prepare Williams Corporation's statement of cash flows for the year ended June 30, 2020. Williams uses the indirect method for operating activities. 3 9 The Statement of Cash Flows Write a brief memo, in your own words, to explain to the managers of B.C. Plating the purposes of the statement of cash flows. E9-11 Carter-Pierce Investments specializes in low-risk government bonds. Identify each of Carter-Pierce's transactions as operating (O), investing (1), financing (F), non-cash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases (-) cash. The indirect method is used for operating activities. a. Acquisition of building by cash payment b. Decrease in merchandise inventory c. Depreciation of equipment d. Decrease in accrued liabilities e. Payment of cash dividend f. Purchase of long-term investment g. Issuance of long-term note payable to borrow cash h. Increase in prepaid expenses i. Accrual of salary expense J. Acquisition of equipment by issuance of note payable k. Sale of long-term investment 1. Issuance of common shares for cash m. Increase in accounts payable n. Amortization of intangible assets o. Loss on sale of equipment p. Payment of long-term debt 9 The Statement of Cash Flows acuvues. . a. Acquisition of building by cash payment b. Decrease in merchandise inventory c. Depreciation of equipment d. Decrease in accrued liabilities e. Payment of cash dividend f. Purchase of long-term investment g. Issuance of long-term note payable to borrow cash h. Increase in prepaid expenses i. Accrual of salary expense -j. Acquisition of equipment by issuance of note payable k. Sale of long-term investment 1. Issuance of common shares for cash m. Increase in accounts payable n. Amortization of intangible assets o. Loss on sale of equipment p. Payment of long-term debt 9. Cash sale of land 1. Repurchase of common shares s. Net income