The following items are relevant to the preparation of a statement of cash flows for Pier...

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The following items are relevant to the preparation of a statement of cash flows for Pier Imports Inc. 1. Comparative balance sheets show a decrease of $10,800 in accrued utilities payable for the current year. 2. Nontrade short-term notes payable to banks increased $144,000 during the current year due to new borrowings. 3. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year. Interest Expense 21,600 Premium on Bonds Payable 1,440 Interest Payable 23,040 4. A $900 cash payment was made to reduce the principal balance of a nontrade loan from a bank. 5. Gross equipment account increased $36,000 during the year, accumulated depreciation increased $14,400, and depreciation expense for the period is $18,000. One item of equipment (cost $18,000, accumulated depreciation $3,600) was sold during the year; a gain of $1,800 on the sale was recognized. 6. Purchase of treasury stock, $54,000 cash. 7. Distribution of cash dividends, $9,000. 8. Sale of available-for-sale debt securities for $28,800, at a loss of $5,400. Note: For the following questions, indicate a net cash outflow with a negative sign. a. Determine the net cash flows that would be reported in the investing section of the statement of cash flows. $ 0 b. Determine the net cash flows that would be reported in the financing section of the statement of cash flows. 0 The following items are relevant to the preparation of a statement of cash flows for Pier Imports Inc. 1. Comparative balance sheets show a decrease of $10,800 in accrued utilities payable for the current year. 2. Nontrade short-term notes payable to banks increased $144,000 during the current year due to new borrowings. 3. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year. Interest Expense 21,600 Premium on Bonds Payable 1,440 Interest Payable 23,040 4. A $900 cash payment was made to reduce the principal balance of a nontrade loan from a bank. 5. Gross equipment account increased $36,000 during the year, accumulated depreciation increased $14,400, and depreciation expense for the period is $18,000. One item of equipment (cost $18,000, accumulated depreciation $3,600) was sold during the year; a gain of $1,800 on the sale was recognized. 6. Purchase of treasury stock, $54,000 cash. 7. Distribution of cash dividends, $9,000. 8. Sale of available-for-sale debt securities for $28,800, at a loss of $5,400. Note: For the following questions, indicate a net cash outflow with a negative sign. a. Determine the net cash flows that would be reported in the investing section of the statement of cash flows. $ 0 b. Determine the net cash flows that would be reported in the financing section of the statement of cash flows. 0

Answer rating: 100% (QA)

a Investing section cash flows Equipment purchases 36... View the full answer