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 Balance Date January 1 Balance Item Debit Credit Debit Credit 316,800 February 10 Purchased for cash 491,000 807,800 November 20 Purchased with long-term mortgage note 654,300 1,462,100 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 Reporting stockholders' equity items on statement of cash flows On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year. ACCOUNT Common Stock, $20 par ACCOUNT NO. Date Item January 1 Balance, 50,000 shares April 2 12,500 shares issued for cash June 30 2,000-share stock dividend Debit Credit Balance Debit Balance Credit 1,000,000 250,000 1,250,000 40,000 1,290,000 ACCOUNT Paid-In Capital in Excess of Par-Common Stock ACCOUNT NO. Date Item January 1 Balance April 2 12,500 shares issued for cash June 30 Stock dividend ACCOUNT Retained Earnings Debit Credit Balance Balance Debit Credit 200,000 375,000 30,000 575,000 605,000 ACCOUNT NO. Date January 1 Item Debit Credit Balance Debit Balance Credit Balance 830,000 June 30 Stock dividend 70,000 760,000 December 30 Cash dividend 95,500 664,500 December 31 Net income 597,600 1,262,100 If an amount is not reported on the statement of cash flows, enter in "0" in the Amount column. Item Sale of common stock Cash dividend Stock dividend Section of Statement of Cash Flows Financing activities section Added or Deducted Added Deducted Financing activities section $ Not reported on statement of cash flows Not applicable Amount On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the "Cash flows from (used for) financing activities" section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Balance Debit Credit January 1 Balance 360,000 January 2 June 30 Retire bonds Issue bonds 72,000 288,000 216,000 504,000 ACCOUNT Discount on Bonds Payable ACCOUNT NO. Date Item Debit Credit Balance Balance Debit Credit January 1 Balance 16,200 January 2 Retire bonds 5,760 10,440 June 30 Issue bonds 14,500 24,940 December 31 Amortize discount 1,250 23,690 Items Retire bonds Section of Statement of Cash Flows Added or Deducted Amount Financing activities section Deducted Issue bonds Financing activities section Added Amortization of discount Operating activities section, if indirect method used Added Selected data (in thousands) derived from the income statement and balance sheet of Cardinas Corp. for a recent year are as follows: Income statement data: Net income Gain on disposal of property $49,290 1,170 Depreciation expense 11,570 Other items involving noncash expenses 1,335 Balance sheet data: Increase in accounts receivable 1,760 Decrease in inventory 960 Increase in prepaid expenses 655 Decrease in accounts payable Decrease in accrued and other current liabilities 675 1,000 a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method for Cardinas Corp. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Enter the amounts in thousands of dollars, as shown above. Cardinas Corp. Cash Flows from Operating Activities (in thousands) Amount Amount Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on disposal of property Other items involving noncash expenses Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued and other current liabilities Net cash flows from operating activities