Question

The statement of financial position, statement of comprehensive income, and additional information are given below for Supreme Company.

.:.

Analysis of selected accounts and transactions:
a. Purchased capital asset, $ 9,000; payment by issuing 600 common shares.
b. Payment at maturity date to retire bonds payable, $ 50,000.
c. Sold the long- term investments for $ 40,000.
d. Reassessment for prior years’ income taxes; paid during 20X5 and added to 20X5 tax expense, $ 6,600.
e. Purchased land, $ 28,400; paid cash.


Required:
1. Prepare the SCF, using the direct method in the operating activities section. Include a list of non- cash transactions that would be presented in the disclosure notes.
2. Prepare the operating activities section of the SCF using the indirect method in the operating activities section. Omit the separate disclosure of cash flow for interest, investment income, and income tax.



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  • CreatedFebruary 17, 2015
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