Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement whenDetermining Cash Payments to Stockholders The board of directors declared cash dividends totaling $585,000 during the current year. The comparative balance sheet indicates dividends payable of $167,625 at the beginning of the year and $146,250 at the end of the year. What was the amount of cash payments to stockholders during the year?Statement of Cash Flows-In The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, Dec. 31 20Y2 20Y1 Assets Cash $183 $14 Accounts receivable (net) 5 49 Inventories 117 99 Land 250 330 Equipment 205 175 Accumulated depreciation-equipment (68) (42) Total assets $742 $625 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $51 $37 Dividends payable Common stock, $1 par 125 80 Paid-in capital: Excess of issue price over par- 85 70 common stock Retained earnings 476 438 Total liabilities and stockholders' equity $742 $625 The following additional information is taken from the records: 1. Land was sold for $120. 2. Equipment was acquired for cash, 3. There were no disposals of equipment during the year 4. The common stock was issued for cash. 5. There was a $62 credit to Retained Earnings for net income. 6. There was a $24 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Olson-Jones Industries Inc Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities; Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow from investing activities O Cash flows from (used for) financing activities: Net cash flow from financing activities 101000 Cash at the beginning of the year Cash at the end of the year b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?Statement of Cash Flows rect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2019 Dec. 31, 20Y8 Assets Cash $70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment 438,600 358,020 Accumulated depreciation-equipment (99,110) (84,320) Total assets $1,211,760 $901,680 Liabilities and Stockholders' Equity Accounts payable $205,700 $194,140 Accrued expenses payable 30,600 26,860 Dividends payable 25,500 20,400 Common stock, $1 par 202,000 102,000 Paid-in capital: Excess of issue price over par-common stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity $1,211,760 $901,680 Additional data obtained from an examination of the accounts in the ledger for 2019 are as follows: 3. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year C. The investments were sold for $91,800 cash. The common stock was issued for cash. e. There was a $141,680 credit to Retained Earnings for net income f. There was a $102,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 100 000 3000 00 0 Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: 10000 0 Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the yearReporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit .UE[ 1 Balance 420,000 2 Retire bonds 84,000 336,000 June 30 Issue bonds 252,000 588,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 18,900 2 Retire bonds 6,720 12,180 June 30 Issue bonds 16,900 29,080 Dec. 31 Amortize discount 1,450 27,630 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds Issue bonds Amortization of discountLabels and Amount Descriptions Labels and Amount Descriptions Cash used for dividends Cash paid for merchandise Cash used for purchase of equipment Cash used for purchase of land Cash received from customers Cash from sale of common stock Cash from sale of investments December 31, 20Y3 Decrease in accounts payable Decrease in accounts receivable Decrease in accrued expenses payable Decrease in inventories Decrease in cash Depreciation For the Year Ended December 31, 20Y3 Gain on sale of investments Increase in accounts payable ncrease in accounts receivable norease in accrued expenses payable Increase in cash Increase in inventories Loss on sale of investments Net cash flow from operating activities Net cash flow used for operating activities Net cash flow from investing activities Net cash flow used for investing activities Net cash flow from financing activities Net cash flow used for financing activities Net incomeInstructions The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 s Inventories 770,000.00 750,000.00 Investments 0.00 100,000.00 Land 500,000.00 0.00 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders' Equity 12 Accounts payable $340,000.00 $300,000.00 15 Accrued expenses payable 45,000.00 50,000.00 14 Dividends payable 50,000.00 5,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital: Excess of issue price over par-common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 Total liabilities and stockholders'equity $2,675,000.00 $2,100,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: A. The investments were sold for $175,000 cash. B. Equipment and land were oquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash E. There was a $500,000 credit to Retained Earnings for net income. F. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.Statement of Cash Flows Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. Navaria Inc. Statement of Cash Flows (Label) 1 Cash flows from operating activities: 2 Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 30 13 Cash flows from (used for) investing activities: 19 Cash flows from (used for) financing activities: 20 22 23 24 Cash at the beginning of the year 25 Cash at the end of the year