Exercise 125 Your answer is partially correct Try again The

Exercise 12-5 Your answer is partially correct. Try again. The following information is available for Bonita Industries for the year ended December 31, 2017 Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds 45,855 3,770 165,078 8,356 11,209 289,498 35,665 12,228 4,789 294,491 26,494 203,800 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bonita Industries Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 289,498

Solution

Bonita Industries Cash Flow Statement - Indirect Method for Year ended 31.12.2017 Particulars Amount Cash flow from operating Activities Net Income 289498 Adjustments Depreciation Expense 165078 Increase in Income Tax payable 4789 Increase in Accounts Receivable -8356 Increase in Inventory -11209 Decrease in Accounts Payable -3770 146532 Net Cash from Operating Activities 436030 Cash Flow from Investing Activities Sale of Land 35665 Purchase of Building -294491 Net cash from Investing activities -258826 Cash flow from financing Activities Payment of dividend -12228 Purchase of Treasury stock -26494 Issuance of Bonds 203800 Net cash from Financing activities 165078 Net Increase in Cash 342282 Cash at Beginning 45855 Closing Cash Balance 388137