Compute the investing activities, cash flow using indirect method

1. The following information pertains to Bush Company for the fiscal year 2020. Purchase of plant and equipment $34,000 Purchase of long-term investment $18,000 Increase in accounts payable $4,200 Repayment of bonds payable $15,000 Depreciation of plant and equipment $6,800 Loss on redemption of bonds $5,800 Calculate the increase (decrease) in cash from investing activities. Increase or decrease in cash from investing activities = $ ? 2. A simplified balance sheet for Supernova Inc. contain the following amounts at the end of 2019 and 2020. Supernova Inc. Balance Sheet As at February 28 2020 2019 Assets Current Assets Cash $-7.500 $8,500 Accounts Receivable $15.600 $6,800 Prepaid Expenses $2 400 $1,600 Merchandise inventory $34,400 $12 200 Total Current Assets $44 900 $29,100 Long-Term Assets Equipment $177,000 $152,000 Less: Accumulated Depreciation $ $-29.200 5-19,400 Total Long-Term Assets $147 800 $132 600 Total Assets $192.700 $161.700 Liabilities Current Liabilities $17.900 $17.900 Long-Term Liabilities $25,000 $39.000 Total Liabilities $42.900 $56,900 Shareholders' Equity Contributed Capital Preferred Shares $58.000 $58.000 Common Shares $30,000 $18,000 Total Contributed Capital $88.000 $76,000 Retained Earnings $61.800 $28,800 Total Shareholders' Equity $149,800 $104,800 Total Liabilities and Equity $192,700 $161,700 Assume current liabilities include only items from operations (e.g., ac- counts payable, taxes payable). Long-term liabilities include items from fi- nancing (e.g. bonds and other long-term liabilities). Note that the com- pany did not sell any equipment and did not borrow any additional long- term liabilities throughout the year. Prepare the cash flow statement for 2020 using the indirect method. As- sume no dividends were declared or paid in 2020. Supernova Inc. Cash Flow Statement For the Year Ended February 28, 2020 Cash Flow from Operations Net Income Answer Adjustments to reconcile Net Income to Cash Depreciation Expense Answer Change in Operating Assets and Liabilities Increase in Accounts Receivable AnswerIncrease in Office Supplies Answer Increase in Merchandise Inventory Answer Net Cash Provided (Used) by Operating Activities Answer Cash Flow from investing Activities Purchase of Equipment Answer Net Cash Provided (Used) by Investing Activities Answer Cash Flow from Financing Activities Issuance of Common Shares Answer Repayment of Long-Term Liabilities Answer Net Cash Provided (Used) by Financing Activities Answer Net Increase (Decrease) in Cash Answer Cash at the Beginning of the Year Answer Cash at the End of the Year Answer 3. Vortex Manufacturing makes and sells integrated circuit boards. At the end of 2020, the income statement and comparative balance sheet were prepared as shown below. Vortex Manufacturing Balance Sheet As at October 31 2020 2019 Assets Current Assets cash $442,775 $125,300 Accounts Receivable $240.700 $260.900 Merchandise Inventory $517,200 $452,900 Prepaid Expenses $20,300 $20,300 Total Current Assets $1,220,975 $859.400 Long-Term Assets Land $17,400 Equipment $356,600 $356,600 Less: Accumulated Depreciation $-105,000 5-91.300 Total Long-Term Assets $251,600 $282.700 Total Assets $1.472,575 $1.142,100 Liabilities Current Liabilities Accounts Payable $306,400 $322,000 Notes Payable, Current Portion $32.600 $24 800 Total Current Liabilities 339,000 $346,800 Notes Payable, Long-Term Portion $212,000 $199.300 Total Liabilities $551,000 $546,100 Shareholders' Equity common Shares $276,000 $246,000 Retained Earnings $645.575 $350.000 Total Shareholders' Equity $921,575 $596,000 Total Liabilities and Equity $1 472,575 $1,142,100 Additional Information: During 2020, land was sold for a loss of $3,900. There was no purchase of equipment throughout the year. The company did not pay off any amount of the notes payable. Vortex Manufacturing Income Statement For the Year Ended October 31, 2020 Sales $2,992,000 Cost of Goods Sold $1,795,200Gross Profit $1,196,800 Operating Expenses Depreciation Expense $13,700 Other Operating Expenses $661,700 Total Operating Expenses $675,400 income from Operations 521,400 Other Income and Expenses Loss on Sale of Land $-3,900 Income before Income Tax $517,500 Income Tax $181,125 Net Income $336,375 Create the cash flow statement using the indirect method. Vortex Manufacturing Cash Flow Statement For the Year Ended October 31, 2020 Cash Flow from Operating Activities Net Income Answer Adjustments to Reconcile Net Income to Cash Depreciation Answer Loss on Sale of Land Answer Change in Operating Assets and Liabilities Decrease in Accounts Receivable Answer Increase in Merchandise Inventory Answer Decrease in Accounts Payable Answer Net Cash Provided (Used) by Operating Activities Answer Cash Flow from Investing Activities Sale of Land Answer Net Cash Provided (Used) by Investing Activities Answer Cash Flow from Financing Activities Proceeds from Notes Payable Answer Payment of Cash Dividend Answer ssue of Common Shares Answer Net Cash Provided (Used) by Financing Activities Answer Net Increase (Decrease) in Cash Answer Cash at the Beginning of the Year Answer Cash at the End of the Year