Statement of Cash Flows (20 points) 1. The Bolera Company had the following cash transactions during 2014. The Bolera Company uses the direct method of presenting the Statement of Cash Flows REQUIRED: Fill in the following table by classifying the following transactions of the Bolera Company as cash flows from operating activities, investing activities or financing activities and identifying the cash flow as an inflow or outflow Transaction Activity classification? Inflow or Outflow? Bolera made a cash payment to reduce accounts payable Bolera received the repayment of principal Bolera received a cash interest payment Bolera paid dividends to its shareholders Bolera paid salaries Bolera sold investments in equity securities of IBM Corp. on a note The Rightway Company uses the indirect method of presenting the Statement of Cash Flows. At 12/31/2014, an investigation of their 2013 and 2014 Balance Sheets reveals that the balance in Net Accounts Receivable has decreased by $100,000 from 2013 to 2014 and the balance in Accounts Payable has decreased by $75,000 from 2013 to 2014. The balance in Net Property, Plant and Equipment has decreased by $15,000 and they noted that no property, plant or equipment was purchased or sold during 2. 2014 REQUIRED: In the space provided, prepare the Operating Cash Flow Section of the 2014 Statement of Cash Flows for the Rightway Company by providing the adjustments to reconcile net income of $850,000 to net cash flows provided by operating activities. Statement of Cash Flows Rightway Company for the Year Ended December 31, 2014 Cash Flows From Operations: $850,000 Net Income Adjustments to reconcile net income to net cash provided by operating activities: 7