Working with a statement of cash flows Given the balance she

(Working with a statement of cash flows) Given the balance sheet, E. and income statement,EEprepare a statement of cash flows for Abrahams Manufacturing Company for the year ended December 31, 2015 Additional Information 1. The only entry in the accumulated depreciation account is for 2015 depreciation. 2. The firm paid $22,000 in common stock dividends during 2015 Complete the operating activities part of the statement of cash flows: (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outfiows as negative values.) Statement of Cash Flows Cash Flows from Operating Activities Net income Depreciation Increase in accounts recelvable Decrease in inventory Increase in account payable Decrease in accrued liabilities Net cash provided by operating activities

Solution

Statement of cash flows Amount Net income before dividends 34000 Adjustements Depreciation 26000 Increase in accounts receivables -6000 Decrease in inventory 12000 Increase in accounts payable 5000 Decrease in accrued liabilities -5000 Net cash provided by operations 66000