Explain how the following transactions should be reported in the statement of cash flows, assuming the indirect method is used to determine cash flows from operating activities. Identify all available options. If not reported on the statement of cash flows, indicate the disclosure requirements, if any.
1. An increase in allowance for bad debts by $18,000.
2. A principal payment of $35,000 on a lease liability subsequent to the commencement date of the lease.

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The Answer of Explain how the following transactions should be reported in the statement of cash flows, assuming the indirect method is used to determine cash flows from operating activities. Identify all available options. If not reported on the statement of cash flows, indicate the disclosure requirements, if any.
1. An increase in allowance for bad debts by $18,000.
2. A principal payment of $35,000 on a lease liability subsequent to the commencement date of the lease.

Explain How the Following Transactions Should Be Reported in the Statement