Respuesta :
Answer:
The statement of cash flows using the indirect method would be the following:
Cash flow statement for year ended December 31, 2022:
Description Amount Amount
Operating activities:
Net income $257,000
Adjustments to reconcile net income to net cash from operating activities
Add: Depreciation expense $84,000
Less: Decrease in accounts payable ($3,200)
Less: Increase in accounts receivable ($9,400)
Less: Increase in inventory ($12,300)
Add: Income tax payable increase $4,000
Net cash flows from operating activities $320,100
Investing activities:
Buildings purchased ($140,500)
Cash received from sale of land $40,000
Net cash flows from investing activities ($100,500)
Financing activities:
Dividends paid ($11,900)
Treasury stock purchased ($30,100)
Proceeds from bond issue $269,000
Net cash flows from financing activities $227,000
Net change in cash $446,600
Beginning cash balance $40,000
Ending cash balance $486,600
Explanation:
The statement of cash flows using the indirect method would be the following:
Cash flow statement for year ended December 31, 2022:
Description Amount Amount
Operating activities:
Net income $257,000
Adjustments to reconcile net income to net cash from operating activities
Add: Depreciation expense $84,000
Less: Decrease in accounts payable ($3,200)
Less: Increase in accounts receivable ($9,400)
Less: Increase in inventory ($12,300)
Add: Income tax payable increase $4,000
Net cash flows from operating activities $320,100
Investing activities:
Buildings purchased ($140,500)
Cash received from sale of land $40,000
Net cash flows from investing activities ($100,500)
Financing activities:
Dividends paid ($11,900)
Treasury stock purchased ($30,100)
Proceeds from bond issue $269,000
Net cash flows from financing activities $227,000
Net change in cash $446,600
Beginning cash balance $40,000
Ending cash balance $486,600
