Q1) Indicate for each of given what must be disclosed on statement of cash flows (indirect method). If not disclosed, prepare "Not shown." There may be more than one answer for some items. For item which is added to net income, prepare "Add," and for an item that is reduced from net income, prepare "Deduct." Illustrate financing and investing outflows in parentheses. For instance, an answer might be: Deduct $4,700 or investing ($31,000). If item is noncash transaction which must be disclosed separately, prepare "Noncash."
a) Deferred tax liability increased $10,000.
b) Balance in Investment in Kane Co. Stock increased $12,000 as a result of using equity method.
c) Issuance of a stock dividend increased common stock $40,000 and paid-in capital $16,000.
d) Amortization of bond discount, $1,600.
e) Machinery that cost $100,000 and had accumulated depreciation of $48,000 was sold for $55,000.
f) Issued 6,000 shares of common stock ($10par) with a market value of $15 per share for machinery. (Illustrate the amount, too.)
g) Amortization of patents, $3,000.
h) Cash dividends paid $60,000.