Statement of Cash Flows

Statement of Cash Flows

Author: Jean Brunner


Statement of Cash Flows
The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2013:
Net income, $53,500
Payment of dividends, $16,400
Ten-year, $35,500 bonds payable were issued at face value
Depreciation expense, $13,100
Building was acquired at a cost of $36,700
Accounts receivable decreased by $3,300
Accounts payable decreased by $5,000
Equipment was acquired at a cost of $7,200
Inventories increased by $7,000
Beginning cash balance, $24,600
Prepare Rocky Horror Picture's statement of cash flows for 2013 using the indirect method. Use a minus sign for any negative amounts.

Statement of Cash Flows

For Year Ended December 31, 2013

Net Cash Flow From Operating Activities

Less: Decrease in accounts payable
Add: Increase in inventories
Less: Decrease in accounts receivable
Cash, January 1, 2013
Less: Increase in inventories
Net income
Cash, December 31, 2013
Less: Depreciation expense
Payment for purchase of building
Add: Decrease in accounts payable
Correct 5

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