I really need help with these problems :( Land Transactions on the Statement of

Question

I really need help with these problems :(

Land Transactions on the Statement of Cash Flows Cameron Corporation purchased land for $548,000. Later in the year, the company sold a different piece of land with a book value of $263,000 for $295,000 How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Gain or loss on sale of land Cash received from sale of land Action Amount Deducted from net income Part of cash flows from investing activities Cash paid for purchase of land Part of cash flows from investing activities v

Explanation / Answer

(1.) Gain or loss on sale of land Sale value-Book value 295000-263000 32000 Cash Received From sale 295000 Cash Paid for purchase of land 548000 (2.) Current Year Previous Year Change Increase/Decrease % (Change/Prev. Year Values) Accounts Payable 36960 46200 9240 Decrease 20% Long Term Debt 71552 68800 2752 Increase 4%

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