Effects of Transactions on Statement of Cash Flows
Indicate for each of the following what should be disclosed on a statement of a cash flows (indirect method).If not disclosed , write “not shown”. There may be more than one answer for some items. For an item that is added to net income , write “ADD”, and for an item that is detucted from net income, write “deduct”. show financing and investing outflows in paretheses. For example, an answer might be : detuct $4700 or investing (31000). If the item is a noncash transaction that should be disclosed seperately, write “noncash”.
a – The deferred tax liability increased 10,000
b – The balance in investment in Hoyt Co. stock increased 12,000 as a result of using the equity method
c – Issuance of a stock dividend increased common stock 40,000 and paid in capital 160000
d – Amortization of bond discount 1,600
e – Machinery that cost 100,000 and had accumulated depretiattion 48000 was sold for 55000
f – Issued 6,000 shares of common stock ($10par) with a market value of 15$ per share for machinery (show amount)
g – Amortization of patents $3,000
h – Cash dividends paid, $60,000