Problem:
Selected changes in various corporate accounts during a fiscal year are described below. By the use of x’s, indicate the section of the statement of cash flows (indirect or direct method) in which the change is reported.
If the item described is not reported, so indicate.
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Section of Statement of Cash Flows
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Operating
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Investing
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Financing
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Not
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Activities
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Activities
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Activities
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Reported
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0. Merchandise Inventory-net increase ....................................
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X
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1. Retained Earnings-debit for stock dividends distributed ..
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2. Common Stock-credit for issuance at par for cash ...........
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3. Bonds Payable-debit for redemption of bonds ..................
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4. Office Supplies-net decrease ................................................
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5. Accounts Receivable-net decrease ......................................
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6. Retained Earnings-debit for net loss ....................................
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7. Accounts Payable-net increase .............................................
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8. Bonds Payable-credit for issuance for cash .......................
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9. Retained Earnings-debit for cash dividends paid ..............
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10. Equipment-credit for items sold ............................................
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11. Accumulated Depreciation-Equipment-debit for fully depreciated items discarded ....................................................
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