Question Details

Calculate net cash flows from operating activities 




1
Selected transactions for the Ecker Company are listed below.
	1.	Collected accounts receivable.
	2.	Declared and paid dividends on common stock.
	3.	Sold long-term investments for cash.
	4.	Issued stock for equipment.
	5.	Repaid five year note payable.
	6.	Paid employee wages.
	7.	Converted bonds payable to common stock.
	8.	Acquired long-term investment with cash.
	9.	Sold buildings and equipment for cash.
	10.	Sold merchandise to customers.

Instructions
Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

2
Garton Company had net income of $195,000 in 2014. Depreciation expense for the year is $50,000. During the year, Accounts Receivable increased $8,000 and Prepaid Expenses decreased $1,000. The company also sold equipment at a loss of $3,000.

Instructions
Calculate net cash flows from operating activities using the indirect method.





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