132.For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or investing (I)activity on the statement of cash flows under the indirect method.
a.____purchased treasury stock
b.____sold equipment at book value
c.____net income
d.____sold long-term investments
e.____issued common stock
f.____depreciation expense
133.The net income reported on the income statement for the current year was $210,000. Depreciation recorded onequipment and a building amount to $62,500 for the year. Balances of the current asset and current liabilitiesaccounts at the beginning and end of the year are as follows:
|
End of Year
|
Beginning of Year
|
Cash
|
$ 56,000
|
$ 59,500
|
Accounts receivable (net)
|
71,000
|
73,400
|
Inventories
|
140,000
|
126,500
|
Prepaid expenses
|
7,800
|
8,400
|
Accounts payable (merchandise creditors)
|
62,600
|
66,400
|
Salaries payable
|
9,000
|
8,250
|
Required:
(1)Prepare the cash flows from operating activities section of the statement ofcash flows, using the indirect method.
(2)If the direct method had been used, would the net cash flow from operatingactivities have been the same? Explain.