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Below is a list of independent transactions. For each transaction, identify which section of the statement of cash flows it is to be reported and indicate if it is a cash in-flow (a positive number) or cash out-flow (negative number). (Hint: recall the use of the accounting equation A=L+E to help determine if an amount is a positive or negative number.)

Description Section Amount

Issue of bonds payable of $500 cash

Sale of land and building of $60,000 cash

Retirement of bonds payable of $20,000 cash

Current portion of long-term debt changed from $56,000 to $50,000

Repurchase of company's own shares of $120,000 cash

Issuance of common shares of $80,000 cash

Payment of cash dividend of $25,000 recorded to retained earnings

Purchase of land of $60,000 cash and a $100,000 note

Cash dividends received from a trading investment of $5,000

Interest income received in cash from an investment of $2,000

Interest and finance charges paid of $15,000

Purchase of equipment for $32,000

Increase in accounts receivable of $75,000

Decrease in a short-term note payable of $10,000

Increase in income taxes payable of $3,000

Purchase of equipment in exchange for a $14,000 long-term note

Why is it important to disclose certain non-cash transactions? How should they be disclosed?

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