Baird Company engaged in the following transactions for the year2016. The beginning cash balance was $28,300 and the ending cashbalance was $76,261.

  

1. Sales on account were $283,900. The beginning receivablesbalance was $93,900 and the ending balance was $76,700.

2. Salaries expense for the period was $51,970. The beginningsalaries payable balance was $3,518 and the ending balance was$2,010.

3. Other operating expenses for the period were $121,700. Thebeginning other operating expenses payable balance was $4,210 andthe ending balance was $7,953.

4. Recorded $19,580 of depreciation expense. The beginning andending balances in the Accumulated Depreciation account were$14,230 and $33,810, respectively.

5. The Equipment account had beginning and ending balances of$210,790 and $238,990, respectively. There were no sales ofequipment during the period.

6. The beginning and ending balances in the Notes Payable accountwere $52,100 and $149,600, respectively. There were no payoffs ofnotes during the period.

7. There was $6,347 of interest expense reported on the incomestatement. The beginning and ending balances in the InterestPayable account were $1,683 and $1,122, respectively.

8. The beginning and ending Merchandise Inventory account balanceswere $90,240 and $108,288, respectively. The company soldmerchandise with a cost of $155,360 (cost of goods sold for theperiod was $155,360). The beginning and ending balances in theAccounts Payable account were $9,950 and $12,040, respectively.

9. The beginning and ending balances in the Notes Receivable were$4,800 and $10,100, respectively. Notes receivable result fromlong-term loans made to employees. There were no collections fromemployees during the period.

10. "The beginning and ending balances in the Common Stock accountwere $100,000 and $124,000, respectively. The increase was causedby the issue of common stock for cash.

11. Land had beginning and ending balances of $54,200 and $42,461,respectively. Land that cost $11,739 was sold for $8,660, resultingin a loss of $3,079.

12. The tax expense for the period was $8,260. The Taxes Payableaccount had a $990 beginning balance and an $912 endingbalance.

13. The Investments account had beginning and ending balances of$22,400 and $25,200, respectively. The company purchasedinvestments for $17,800 cash during the period, and investmentsthat cost $15,000 were sold for $26,000, resulting in a $11,000gain.

  

Required

1. Determine the amount of cash flow for each item and indicatewhether the item should appear in the operating, investing, orfinancing activities section of a statement of cash flows. AssumeBaird Company uses the direct method for showing net cash flow fromoperating activities.

2. Prepare a statement of cash flows using the direct method.

Determine the amount of cash flow for each item and indicatewhether the item should appear in the operating, investing, orfinancing activities section of a statement of cash flows. AssumeBaird Company uses the direct method for showing net cash flow fromoperating activities. (Any cash outflow should be indicated by aminus sign. Select "No effect" if there is no effect (i.e., zerovariance).)

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Transactions Amount Statement of cash flows 1. in Accounts receivable account 2. in Salaries payable account 3. in Other operating expenses payable 4. in Depreciation expense 5. in Equipment account 6. in Notes payable account 7. in Interest payable account 8. in Accounts payable 9. in Notes receivable 10. in Common stock account 11. in Land account 12. in Taxes payable account 13 in Investments account