Answer:
<u> Blank 1 </u> <u> Blank 2</u>
i. Depreciation expense A I
ii. Purchase of office equipment B D
iii. Decrease in accounts receivable A I
iv. Payment of cash dividends C D
v. Conversion of bonds into common stock D N
vi. Sold land and warehouse used in the corp. B I
vii. Gain on sale of land and warehouse in part vi. A D
viii. Issued common stock for cash C I
ix. Decrease in accounts payable A D
x. Increase in inventory A D
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.
How each of the item will appear in the the statement of cash flows (using the indirect method) is also provided below:
XYZ Company
Statement of Cash Flows (Indirect Method Format)
For the year...
<u>Details $ $ </u>
Operating activities:
Net profit xxx
Adjustment to reconcile net income:
i. Depreciation expense xx
iii. Decrease in accounts receivable xx
vii. Gain on sale of land and warehouse in part vi. (xx)
ix. Decrease in accounts payable (xx)
x. Increase in inventory <u> (xx) </u>
Net cash flows from operating activities xxx
<u>Investing activities:</u>
ii. Purchase of office equipment (xx)
vi. Sold land and warehouse used in the corporation <u> xx </u>
Net cash flows from investing activities xxx
<u>Financing activities:</u>
iv. Payment of cash dividends (xx)
viii. Issued common stock for cash <u> xx </u>
Net cash flows from investing activities <u> xxx </u>
Net cash flow for the year xxx
Beginning cash balance <u> xxx </u>
Ending cash balance <u> xxx </u>
Note: The does not affect the cash flows statement:
v. Conversion of bonds into common stock
