Answer Happy

Each of the following items must be considered in preparing a
statement of cash flows (indirect method) for Duke Enterprises.
State where each item is to be shown in the statement of cash
flows, if at all.
Items
(a) During the year, 50,000 shares of preferred stock with a par
value of $100 a share were issued for $101 a share.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(b) During the year, treasury stock costing $123,000 was
sold.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(c) Equipment that had cost $70,000 2 years before and was being
depreciated on a straight-line basis over 6 years with a $10,000
estimated scrap value was sold for $25,000.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(d) Goodwill impairment was $500,000.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(e) Warranty-related payments of $83,600 were charged against
accrued warranty expenses.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(f) 6-month U.S. Treasury bills were sold for $210,000. The
company uses a cash and cash-equivalent basis for its cash flow
statement.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(g) The company issued $600,000 in bonds payable to acquire
land.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows
(h) The company reported net income for the year of $176,000.
Depreciation amounted to $69,000, and a loss of $45,000 was
reported on the sale of an equity investment.
select a type of activity



Operating ActivityInvesting
ActivityFinancing ActivityOperating and Investing ActivityOperating
and Financing ActivityInvesting and Financing ActivityNoncash
Investing and Financing ActivityNot Reported on Cash Flows