Exercise 12-5 The following information is available for Windsor, Inc. for the y

Question

Exercise 12-5

The following information is available for Windsor, Inc. for the year ended December 31, 2017.

Prepare a statement of cash flows using the indirect method.

Adjustments to reconcile net income to

Beginning cash balance $ 45,720 Accounts payable decrease 3,759 Depreciation expense 164,592 Accounts receivable increase 8,331 Inventory increase 11,176 Net income 288,646 Cash received for sale of land at book value 35,560 Cash dividends paid 12,192 Income taxes payable increase 4,775 Cash used to purchase building 293,624 Cash used to purchase treasury stock 26,416 Cash received from issuing bonds 203,200

Explanation / Answer

Statement of cash flow :

Cash received for sale of land at book value

Cash flow from operating activities net income 288646 Adjustment to reconcile net income Depreciation expense 164592 Account receivable increase -8331 Inventory increase -11176 Account payable decrease -3759 Income taxes payable increase 4775 146101 Net cash flow from operating activities 434747 Cash flow from investing activities 35560 Cash used to purchase building -293624 Net cash flow from investing activities -258064 Cash flow from financing activities Cash dividends paid -12192 Cash used to purchase treasury stock -26416 Cash received from issuing bonds 203200 Net cash flow from financing activities 164592 Net cash flow 341275 Beginning cash 45720 Ending cash 386995

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