Question

1378 Chapter 23 Statement of Cash Flows Instructions Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. (a) Payments for purchase of property, plant, and equipment (b) Proceeds from the sale of equipment (c) Cash dividends paid. (d) Redemption of bonds payable E23-11 (L02) (SCH-Indirect Method Condensed financial data of Pat Metheny Company for 2017 and 2016 are presented below PAT METHENY COMPANY COMPARATIVE BALANCE SHTET As or DECEMBER 31, 2017 AND 2016 5150 51.800 Accumulated depreciation Larmes blo-maily $7,150 51.200 550 Accounts payable Accrued liabilities Bonds payah Common stock Retained wings $7.150 TAT METHENY COMPANY FOR THE YEAR ENDED DECEMBER 31, 2017 2200 1270 Cost of goods sold Gross margin Selling and administrithe expense Income from operations Other events and gains of Westments Income tax Income tax expense Cash dividende Income nained in business Additional information: During the year, 5% of common work was found in exchange for plantes. No plants were sold in 2017 Instructions Prepare a statement of cash flows using the indirect method. 23-12 (L02) (SCH-Direct Method) Data for Pat Metheny Company are presented in E23-11 Instructions I'rpare a statement of cash flows using the direct method. Do not prepare a reconciliation schedule.) 23-12 (L02,31 SCF-Direct MethodBrecker Inc., a greeting card company, had the following statements prepared as of December 11, 2013

Answer 1

E23-11 :
		CASH FLOW STATEMENT
		Particulars	$
	A	Cash flows from operating activities
		Net income	$810
		Adjustments for non-cash effects:
		Depreciation expense	$30
		Adjustments to reconcile net income cash
		Increase in Account receivable	($450)
		Decrease in inventory	$300
		Increase in Account payable	$300
		Decrease in Accrued Liabilities	($50)
		Increase in salaries payable
		Net cash inflow from operating activities	$940
	B	Cash flows from investing activities
		Purchase of equipment	($130)
		Sale of Investment	$120
		Net cash ouflow from investing	($10)
	C	Cash flows from financing activities
		Common stock issued	$130
		Payments to Bonds	($150)
		Dividend paid	($260)
		Net cash inflow from financing activities	($280)
		Net decrease in cash $	$650
		Cash at beginning of year	$1,150
		Cash at end of year	$1,800
Note 1:
		Equipment
		Beg. Bal.	$              530	Depreciation	$30
		Common stock	$                 70
		Cash(purchase)	$130	Ending bal.	$700
			$730		$730