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chrissy5189
chrissy5189
12.05.2021 • 
Business

The following items are relevant to the preparation of a statement of cash flows for Pier Imports Inc. 1. Comparative balance sheets show a decrease of $4,800 in accrued utilities payable for the current year. 2. Nontrade short-term notes payable to banks increased $64,000 during the current year due to new borrowings. 3. The following end-of-year adjusting entry was recorded. No other interest-related transactions or entries occurred during the year. Interest Expense 9,600 Premium on Bonds Payable 640 Interest Payable 10,240 4. $400 payment was made to reduce the principal balance of a nontrade loan from a bank. 5. Gross equipment account increased $16,000 during the year, accumulated depreciation increased $6,400, and depreciation expense for the period is $8,000. One item of equipment (cost $8,000, accumulated depreciation $1,600) was sold during the year; a gain of $800 on the sale was recognized. 6. Purchase of treasury stock, $24,000. 7. Distribution of cash dividends, $4,000. 8. Sale of available-for-sale debt securities for $12,800, at a loss of $2,400. Note: For the following questions, indicate a net cash outflow with a negative sign. a. Determine the amount of net cash flows that would be reported in the investing section of the statement of cash flows. Answer 0 b. Determine the amount of net cash flows that would be reported in the financing section of the statement of cash flows.

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