Rooney Company engaged in the following transactions for the year 2016. The beginning cash balance was $27,800 and the ending cash balance was $65,405. 1. Sales on account were $283,100. The beginning receivables balance was $93,300 and the ending balance was $76,200. 2. Salaries expense for the period was $54,810. The beginning salaries payable balance was $2,905 and the ending balance was $1,660. 3. Other operating expenses for the period were $126,960. The beginning other operating expenses payable balance was $4,700 and the ending balance was $8,878 4. Recorded $19,750 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $14,320 and $34,070, respectively. 5. The Equipment account had beginning and ending balances of $213,530 and $243,030, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $54,400 and $150,400, respectively. There were no payoffs of notes during the period. 7. There was $6,314 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were $1,667 and $1,111, respectively. 8. The beginning and ending Merchandise Inventory account balances were $85.980 and $103,176, respectively. The company sold merchandise with a cost of $150.461 (cost of goods sold for the period was $150,461). The beginning and ending balances in the Accounts Payable account were $9.460 and $11.447, respectively. 9. The beginning and ending balances in the Notes Receivable were $5,200 and $10,500, respectively. Notes receivable result from long-term loans made to employees. There were no collections from employees during the period. 0. "The beginning and ending balances in the Common Stock account were $104,000 and $126,000, respectively. The increase was caused by the issue of common stock for cash. 11. Land had beginning and ending balances of $48,700 and $36.974, respectively. Land that cost $11,726 was sold for $8,650, resulting in a loss of $3,076 2. The tax expense for the period was $7,600. The Taxes Payable account had a $860 beginning balance and an $792 ending balance 3. The Investments account had beginning and ending balances of $20,200 and $23,600, respectively. The company purchased investments for $17.400 cash during the period, and investments that cost $14,000 were sold for $22,000, resulting in a $8,000 gain Required a. Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume Rooney Company uses the direct method for showing net cash flow from operating activities. b. Prepare a statement of cash flows using the direct method. Required A Required B Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Assume Rooney Company uses the direct method for showing net cash flow from operating activities. (Any cash outflow should be indicated by a minus sign. Select "No effect if there is no effect (i.e., zero variance).) Show less Amount Decrease Decrease Increase No effect Increase Increase Transactions in Accounts receivable account in Salaries payable account in Other operating expenses payable in Depreciation expense in Equipment account in Notes payable account in Interest payable account in Accounts payable in Notes receivable in Common stock account in Land account in Taxes payable account in Investments account 17,100 (1,245) 4,178 0 (29,500) 96,000 (556) 1,987 (5,300) 22.000 11,726 (68) (3.400) Statement of cash flows Operating activities Operating activities Operating activities No effect Investing activities Financing activities Operating activities Operating activities Operating activities Financing activities Investing activities Operating activities Investing activities Decrease Increase Increase Increase Decrease Decrease Increase Required B > ROONEY COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash Flows From Operating Activities: Cash Receipts from: 300,200 $ 300,200 Total cash inflows Cash Payments for: Salaries Other operating expenses Interest (56,055) (122,782) (6,870) -(165,670) (5,300) (7.668) (364,345) (64,145) Proceeds from loan Taxes Total cash outflows Net cash outflow from operating activities Cash Flows from Investing Activities: Paid to purchase equipment Proceeds from sale of land Paid to purchase investments Proceeds from sale of investments (29,500) 8,650 (17.400) 22,000 (16.250) Cash Flows from Financing Activities: Cash Flows from Financing Activities: Disbursed for notes receivable 96,000 22,000 Net cash outflow from investing activities > Net increase in cash Less: Beginning cash balance Ending cash balance 118,000 37,605 27,800 65,405 $