Cash Flow Statement

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There are four parts to the Statement of Cash Flows (or Cash Flow Statement):     1.  Operating Activities     2.  Investing Activities     3.  Financing Activities     4.  Supplemental For each of the following items, indicate which part will be affected.

1.	Depreciation Expense
Operating              Investing              Financing              Supplemental

2.	Proceeds from the sale of equipment used in the business
Operating              Investing              Financing              Supplemental

3.	The Loss on the Sale of Equipment in previous question
Operating              Investing              Financing              Supplemental

4.	Declaration and payment of dividends on company's stock
Operating              Investing              Financing              Supplemental

5.	Gain on the Sale of Automobile formerly used in the business
Operating              Investing              Financing              Supplemental

6.	The proceeds from the sale of the automobile in the previous question
Operating              Investing              Financing              Supplemental

7.	An increase in the balance in a retailer's Merchandise Inventory
Operating              Investing              Financing              Supplemental

8.	An increase in the balance in Accounts Payable
Operating              Investing              Financing              Supplemental

9.	Retirement of long-term Bonds Payable
Operating              Investing              Financing              Supplemental

10.	Purchase of Treasury Stock (company's own stock)
Operating              Investing              Financing              Supplemental

11.	The purchase of a new delivery truck to be used in the business
Operating              Investing              Financing              Supplemental

12.	A decrease in the balance of Accounts Receivable
Operating              Investing              Financing              Supplemental

13.	An increase in Bonds Payable (a long-term liability)
Operating              Investing              Financing              Supplemental

14.	A decrease in the current asset account Prepaid Insurance
Operating              Investing              Financing              Supplemental

15.	A decrease in the current liability Income Taxes Payable
Operating              Investing              Financing              Supplemental

16.	The proceeds from issuing additional Common Stock
Operating              Investing              Financing              Supplemental

17.	The amortization of the cost of an intangible asset
Operating              Investing              Financing              Supplemental

18.	The exchange/conversion of long-term bonds into common stock
Operating              Investing              Financing              Supplemental

For items 19 – 30 indicate whether the following items are considered to have positive or negative EFFECT ON CASH. A positive effect could also be thought of as a source of cash, an increase in cash, or a positive amount on the cash flow statement. A negative effect could also be thought of as a use of cash, a decrease in cash, or a negative amount on the cash flow statement.

19.	An increase in the balance of Prepaid Insurance	Positive	Negative
20.	A decrease in Supplies on hand	Positive	Negative
21.	The proceeds from the sale of equipment formerly used in the business	Positive	Negative
22.	The Loss on the Sale of Equipment in the previous question	Positive	Negative
23.	An increase in the current liability Income Taxes Payable	Positive	Negative
24.	A decrease in Accounts Payable	Positive	Negative
25.	An increase in Accounts Receivable	Positive	Negative
26.	An increase in the current liability Warranty Liability	Positive	Negative
27.	Dividends declared and paid	Positive	Negative
28.	Proceeds from the issuance of Preferred Stock	Positive	Negative
29.	The Gain on the Sale of Equipment formerly used in the business	Positive	Negative
30.	An increase in the long-term asset Investment in Another Company	Positive	Negative

31.	For a recent year a corporation's financial statements reported the following: Net Income $100,000 Depreciation Expense 10,000 Increase in Accounts Receivable 30,000 Decrease in Accounts Payable 15,000 Based on the above information, what amount will the corporation report as Cash Provided by Operating Activities on the cash flow statement?
$65,000              $125,000              $155,000

32.	A corporation reported the following information for the past year: Net Income $200,000 Depreciation Expense 30,000 Gain on Sale of Truck 5,000 Proceeds from Sale of Truck 8,000 Decrease in Accounts Receivable 10,000 Assuming these are the only facts, what amount will the corporation report as the Cash Provided by Operating Activities on the cash flow statement?
$225,000              $235,000              $253,000

33.	Using the information in Drill #32, what amount will be reported under Cash From Investing Activities?
$3,000              $8,000              $13,000