Each of the following items must be considered in preparing a statement of cash flows for Phillie

Question:

Each of the following items must be considered in preparing a statement of cash flows for Phillie Fashions for the year ended 31 December 20X6:

1. Finance assets that had a cost of $\$ 10,00061 / 2$ years before and were being depreciated straight-line on a 10 -year basis, with no estimated scrap value, were sold for $\$ 3,125$.

2. Phillie Company leased an asset to a customer, as a way of selling it, on 31 December 20X6. Phillie recognized a net receivable of $\$ 23,456$, after the first payment of $\$ 8,700$. The $\$ 8,700$ payment was collected on 31 December. The gross profit on the sale was $\$ 5,670$. There was unearned finance revenue of $\$ 6,200$ over the lease term, which lasts four years.

3. During the year, goodwill of $\$ 5,000$ was completely written off to expense.

4. During the year, 250 shares of common stock were issued for $\$ 32$ per share.

5. Finance asset amortization amounted to $\$ 1,000$, and patent amortization to $\$ 200$.

6. Bonds payable with a par value of $\$ 12,000$, on which there was an unamortized bond premium of $\$ 360$, were redeemed at 103 .

7. Phillie Company, as lessee, reported a net lease liability of $\$ 14,678$ at the end of $20 X 6$. In $20 X 5$, the liability had been $\$ 15,766$. The current portion of the liability was $\$ 2,410$ each year.

Required:

For each item, state what would be included in the statement of cash flows, whether it is an inflow or outflow, and the amount(s). Assume that correct entries were made for all transactions as they took place and that the indirect method is to be used to disclose cash flow from operations. In your response, use a three-column format as follows: