(Analysis of Transactions' Effect on SCF) Each of the followingitems must be considered in preparing a statement of cash flows forCruz Fashions Inc. for the year ended December 31, 2020.
- 1.Fixed assets that had cost $20,000 6½ years before and werebeing depreciated on a 10-year basis, with no estimated scrapvalue, were sold for $4,750.
- 2.During the year, goodwill of $15,000 was considered impairedand was completely written off to expense.
- 3.During the year, 500 shares of common stock with a statedvalue of $25 a share were issued for $32 a share.
- 4.The company sustained a net loss for the year of $2,100.Depreciation amounted to $2,000 and patent amortization was$400.
- 5.Uncollectible accounts receivable in the amount of $2,000were written off against Allowance for Doubtful Accounts.
- 6.Debt investments (available-for-sale) that cost $12,000 whenpurchased 4 years earlier were sold for $10,600.
- 7.Bonds payable with a par value of $24,000 on which there wasan unamortized bond premium of $2,000 were redeemed at 101.
Instructions
For each item, state where it is to be shown in the statementand then how you would present the necessary information, includingthe amount. Consider each item to be independent of the others.Assume that correct entries were made for all transactions as theytook place.
