During the year, Wright Company sells 495 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $ 1,850,000 Expenses: Cost of goods sold $ 1,070,000 Operating expenses 580,000 Depreciation expense 52,000 Income tax expense 42,000 Total expenses 1,744,000 Net income $ 106,000 Selected Balance Sheet Data December 31 Year 2 Year 1 Increase (I) or Decrease (D) Cash $ 104,000 $ 86,000 $ 18,000 (I) Accounts receivable 45,200 50,000 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for the company using the indirect method.

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.