Please show me how to prepare the statement of cash flows for this problem. Than

Question

Please show me how to prepare the statement of cash flows for this problem. Thank you.

Below are comparative balance sheets for Flowers, Inc. at December 31, 2015 and 2014: Additional information: Net income for 2015 was dollar37,000. Operating expenses include depreciation expense of dollar42,000. Cash dividends of $12,000 were paid. Land was sold for cash at book value. Equipment was purchased for dollar92,000 cash. In addition, equipment costing dollar22,000 with a book value of dollar10,000 was sold for dollar8,000 cash. 40,000 shares of dollar1 par value common stock were issued In exchange for land with a fair value of dollar40,000. Required: Using the information above, prepare the statement of cash flows, using the indirect method to present cash flows for operating activities for Rowers, Inc. for the year ended December 31, 2015.

Explanation / Answer

FRIENDS INC.,

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31,2015

FRIENDS INC.,

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31,2015

Cash Flow From Operating Activities : Adjustments to reconcile net income to net cash provided by operating activities 37,000 Depreciaton Expense 42,000 Increase in inventory (9,450) decrease in accounts receivable 8,000 Increase in accounts payable 8,730 Net cash Provided By operating activities 86,280 Cash Flows From Investing Activities: Sold land 145,000 Purchase of Equipment (92,000) Loss on Sale of equipment (2,000) Net Cash used by investing activities 51,000 Cash Flow From Financing Activities: Issuance of Stock 40,000 Payment of cash dividends (12,000) Net Cash Used By Financin 28,000 Net Increase in Cash 7,280 Cash At Begining of Year 45,000 Cash At End of Year 68,000

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