1. A corporation issued $4,000,000 of 20-year bonds for cash at 105. How would the transaction be reported on the statement of cash flows?
2. Fully depreciated equipment costing $65,000 was discarded. What was the effect of the transaction on cash flows if (a) $12,000 cash is received, (b) no cash is received?
3. Name five common major classes of operating cash receipts or operating cash payments presented on the statement of cash flows when the cash flows from operating activities are reported by the direct method.