Situation C Partnership

Nick, Doll, and Peter combine their individual sole proprietorship to start the NDP Partnership. Nick, Doll, and Peter invest in the partnership as follows:

Accounts	Nick Partner		Doll Partner		Peter Partner
	Book Value	Fair Value	Book Value	Fair Value	Book Value	Fair Value
Cash	11,000	11,000	-	-	10,000	10,000
Accounts Receivable	4,000	4,000	-	-	-	-
Equipment	10,000	15,000	13,000	11,000	12,000	12,000
Inventory	5,000	5,000	5,000	5,000	5,000	5,000
Accounts Payable	10,000	10,000	-	-	-	-
Bonds Payable	-	-	10,000	9,000	-	-

Instructions: prepare the journal entry for the investment that each partner brings, it is recommended to do the transaction by partner.

Situation D Statement of Cash Flows Operating Section

Alfonso Inc., a service company, has the following selected information at December 31, 2021.

Data for Balance Sheet	2021	2020	Difference Increase or Decrease
Cash	$63,000	$61,000
Accounts Receivable	$78,000	$86,000
Prepaid Expenses	$12,000	$6,000
Accounts Payable	$92,000	$87,000
Income Taxes Payable	$17,000	$13,000

Data for Income Statement for 2021
Sales Revenues	$173,000
Operating Expenses	160,000
Income Before Income Taxes	$13,000
Income Taxes Expenses	6,000
Net Income	$7,000
Operating expenses include $4,000 of depreciation expenses

Instructions:

1. Using the direct method, prepare the operating activities section of the statement of cash flows for 2021, you must present the formulas that you use to complete the direct section of the operational part.
2. Using the indirect method, prepare the operating activities section of the statement of cash flows for 2021.