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Analyze the transactions you have and indicate whether each transaction resulted in a cash flow from a) Operating activities b) Investing activities c) Financing activates d) Noncash investing and financing activities Indicate whether the effect is a a) Cash Inflow b) Cash Outflow The HAHA & MAMA Corporation 1. Purchased an equipment for $11,000 and paid cash 2. Issued $50,000 par value common stock 3. Paid dividends of 12.000 during the year 4. Sold a long-term investment with a cost of $15.000 for $15,000 cash 5. Collected $16,000 of accounts receivable 6. Paid $18,000 on account payable 8. Purchased a machine for $30,000, giving a long-term note for exchange 9. Paid $10.500 of bonds 10. Paid S26,000 of salaries and wages Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method HAHA MAMA Corporation Income Statement For the Year Ended December 31, 2015 Reven Sales S100.000 Gaine sale of land 20.000 Total $430,000 HAHA MAMA Corporation Comparative Balance Sheet Accounts December 31 Current Assets 2015 2014 Change Accounts receivable $30,000 $39.000 Prepaid rent 15.000 10.000 Inventory 20.000 18.000 Current Liabilities Accounts payable 18.000 12.000 Interest payable 6.000 2.000 Taxes payable 3.000 .000 2000 750 Costo es sold Operating expenses Depreciate In e en Ince Total expenses Net Income HAHA & MAMA Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2015 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense Gain on sale of land Decrease in accounts receivable Increase in prepaid rent Increase in inventory Increase in accounts payable Increase in interest payable Decrease in taxes payable Net cash provided by operating activities

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