part 2 thank you

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities

a.Equipment and land were acquired for cash
b.There were no disposal of equipment during the year
c.The investments were sold for 45,000 cash
d.The common stock was issued for cash
e.There was a 65,900 credit to retained earning for net income
f.There was a 50,000 debit to retained earning for cash dividends declared.

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To prepare a statement of cash flows using the indirect method of presenting cash flows from operating activities, you need to categorize each transaction into one of the following three sections: operating activities, investing activities, and financing activities.

Let's go through each transaction and determine its section:

a. Equipment and land were acquired for cash:
This transaction falls under investing activities as it involves acquiring assets.
→ This transaction is not included in the statement of cash flows using the indirect method.

b. There were no disposals of equipment during the year:
Since there were no disposals, this transaction does not affect cash flows and can be excluded from the statement.

c. The investments were sold for $45,000 cash:
This transaction falls under investing activities as it involves the sale of an investment.
→ The cash inflow of $45,000 will be included as a positive amount in the investing activities section of the statement.

d. Common stock was issued for cash:
This transaction falls under financing activities as it involves raising capital by issuing stock.
→ The cash inflow from issuing common stock will be included as a positive amount in the financing activities section of the statement.

e. There was a $65,900 credit to retained earnings for net income:
This transaction falls under operating activities as it represents the net income for the period.
→ The net income of $65,900 will be included as a positive amount in the operating activities section of the statement.

f. There was a $50,000 debit to retained earnings for cash dividends declared:
This transaction falls under financing activities as it involves the payment of dividends to shareholders.
→ The cash outflow of $50,000 will be included as a negative amount in the financing activities section of the statement.

After categorizing the transactions, you can prepare the statement of cash flows by summarizing the cash inflows and outflows from each section (operating activities, investing activities, and financing activities) for the given period.