Wiley plus Kieso chapter 5 Wiley plus Kieso chapter 5 Wiley

31, 2016 Prepare a Show

Solution

Statement of Cash Flows - Indirect Method Amount in $ Amount in $ Net income $             35,250 Cash flows from operating activities Adjustments for: Depreciation $             12,367 Gain on sale of investment $              -4,767 (Increase) / Decrease in Account receivables $            -20,400 $            -12,800 Net cash from operating activities $             22,450 Cash flows from investing activities Sale of Investment $             16,367 Purchase of Land $            -16,250 Net cash used in investing activities $                   117 Cash flows from Financing activities Issue of Common Stock $             21,367 Retirement of Long Term Note Payable $            -17,367 Dividend Paid $              -9,567 Note Payable Net cash used in financing activities $              -5,567 Net increase in cash and cash equivalents $             17,000 Add :Cash and cash equivalents at beginning of period $             23,250 Cash and cash equivalents at end of period $             40,250