Statement of cash flows (indirect method)
Cash flows from operating activities
Net income
72,600
adjustments to net income
depreciation
4,000
Gan on sale of investments
-7,000
Increase in AR
-36,000
Decrease in inventory
40,000
Increased in Accounts payable
13,000
Decrease in Accrued liabilities
-3,100
net cash provided by operating activities
83,500
Cash flows from investing activities
Purchase of Plant assets
-16,000
Sale of long-term investments
20,000
net cash provided by investing activities
4,000
Cash flows from financing activities
retiement of bonds
-31,000
payment of dividend
-32,500
sale of common stock
6,000
net cash provided by financing activities
-57,500
net increase in cash
30,000
Cash balance, beginning
230,000
cash balance, ending
260,000
Statement of Cash flows (direct method)
Cash flows from operating activities
cash received from customers
714,000
(sales - increase in AR)
cash paid for merchandise
477,000
(cogs - decrease in invnetory - increase in AP)
cash paid for other operating expenes
105,100
(selling & admin exp + decrease in accrued liab - depreciation)
cash paid for income taxes
48,400
net cash provided b oeprating activities
83,500
Cash flows from investing activities
Purchase of Plant assets
-16,000
Sale of long-term investments
20,000
net cash provided by investing activities
4,000
Cash flows from financing activities
retiement of bonds
-31,000
payment of dividend
-32,500
sale of common stock
6,000
net cash provided by financing activities
-57,500
net increase in cash
30,000
Cash balance, beginning
230,000
cash balance, ending
260,000
.
Statement of cash flows (indirect method) Cash flows from ope.docx
1. Statement of cash flows (indirect method)
Cash flows from operating activities
Net income
72,600
adjustments to net income
depreciation
4,000
Gan on sale of investments
-7,000
Increase in AR
-36,000
2. Decrease in inventory
40,000
Increased in Accounts payable
13,000
Decrease in Accrued liabilities
-3,100
net cash provided by operating activities
83,500
Cash flows from investing activities
Purchase of Plant assets
-16,000
3. Sale of long-term investments
20,000
net cash provided by investing activities
4,000
Cash flows from financing activities
retiement of bonds
-31,000
payment of dividend
-32,500
sale of common stock
6,000
4. net cash provided by financing activities
-57,500
net increase in cash
30,000
Cash balance, beginning
230,000
cash balance, ending
260,000
Statement of Cash flows (direct method)
Cash flows from operating activities
5. cash received from customers
714,000
(sales - increase in AR)
cash paid for merchandise
477,000
(cogs - decrease in invnetory - increase in AP)
cash paid for other operating expenes
105,100
(selling & admin exp + decrease in accrued liab -
depreciation)
cash paid for income taxes
48,400
net cash provided b oeprating activities
6. 83,500
Cash flows from investing activities
Purchase of Plant assets
-16,000
Sale of long-term investments
20,000
net cash provided by investing activities
4,000
Cash flows from financing activities
retiement of bonds
7. -31,000
payment of dividend
-32,500
sale of common stock
6,000
net cash provided by financing activities
-57,500
net increase in cash
30,000
Cash balance, beginning
230,000
cash balance, ending
