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 $1,726 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. ces 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. Complete this question by entering your answers in the tabs below. Required B 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. (Any cash outflow should be indicated by a minus sign. Select "No effect" if there is no effect (i.e., zero variance).) Transactions Amount Statement of cash flows in Accounts receivable account in Salaries payable account in Other operating expenses payable in Depreciation expense in Equipment account 1. 2. 3. 4. 5. in Notes payable account in Interest payable account 6. 7. in Accounts payable 8. in Notes receivable 9. in Common stock account 10. in Land account 11. in Taxes payable account in Investments account 12. 13 Required > Prepare a statement of cash flows using the direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) ROONEY COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash Flows From Operating Activities: Cash Receipts from: Total cash inflows Cash Payments for: Total cash outflows Cash Flows from Investing Activities: pok Print Cash Flows from Financing Activities: eferences Ending cash balance Regoiu ( Required A