After the first exam has been completed you may not take the

After the first exam has been completed you may not take the exam. Writing your name on this exam signifies that you understand these instructions. Name 1. ABC accountants have assembled the following data for the year ended March 31, 2016 $26,000 4,000 Cash receipt from the sale of land Depreciation expense Cash payment of dividends Cash receipt from issuance of common stock Net Income Cash purchase of equipment Decrease in current liabilities Increase in current assets other than cash Beginning cash Ending cash 5,600 25,000 62,000 36,000 18,000 26,000 23,300 54,700 Neatly prepare ABC\'s statement of cash flows below using the indirect method for the year ended March 31, 2016 (16pts) ABC Statement of Cash Flows Year Ended March 31, 2016

Solution

ABC Statement of Cash Flows For the year ended March 31 2016 Cash flows from operating activities   Net income   $          62,000 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation   $            4,000 Increase in Current Assets other than cash $        (26,000) Decrease in Current Liabilities $        (18,000) Net cash provided by operating activities   $          22,000 Cash flows from Investing activities   Purchase of plant & equipment   $        (36,000) Proceeds from sale of Land $          26,000 Net cash used by investing activities   $        (10,000) Cash flows from Financing activities   Dividend paid   $          (5,600) Proceeds from issue of common stock $          25,000 Net cash used by financing activities   $          19,400 Net increase in CCE   $          31,400 CCE at beginning of year   $          23,300 CCE at end of year   $          54,700