Seth Erkenbeck, a recent college graduate, has just completed the basic format t

Question

Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).

Listed below in random order are line items to be included in the statement of cash flows.

   

Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).

ATM SOFTWARE DEVELOPERS
Statement of Cash Flows
For the year ended December 31, 2015   Cash Flows from Operating Activities      Net income     Adjustments for noncash effects:     Changes in current assets and current liabilities:      Net cash flows from operating activities   Cash Flows from Investing Activities      Net cash flows from investing activities   Cash Flows from Financing Activities      Net cash flows from financing activities   Net increase (decrease) in cash $ 3,765   Cash at the beginning of the period 7,510   Cash at the end of the period $ 11,275

Listed below in random order are line items to be included in the statement of cash flows.

   

     Cash received from the sale of land $ 8,650   Issuance of common stock 13,075   Depreciation expense 5,465   Increase in accounts receivable 4,090   Decrease in accounts payable 1,760   Issuance of long-term notes payable 16,495   Purchase of equipment 39,865   Decrease in inventory 1,475   Decrease in prepaid rent 905   Payment of dividends 6,370   Net income 12,400   Purchase of treasury stock 2,615 ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities in the statement Net cash flows from operating activities $0 Cash Flows from Investing Activities: Net cash flows from investing activities 0 Cash Flows from Financing Activities: Net cash flows from financing activities 0 Cash at the beginning of the period Cash at the end of the period $0

Explanation / Answer

ATM SOFTWARE DEVELOPERS

Statement of Cash Flows

For the Year Ended December 31, 2015

Cash Flows from Operating Activities:

Net income

12400

Adjustments to reconcile net income to net cash flows from operating activities in the statement

Depreciation

5465

Increase in account receivable

-4090

Decrease in account payable

-1760

Decrease in inventory

1475

Decrease in prepaid rent

905

14395

Net cash flows from operating activities

14395

Cash Flows from Investing Activities:

Cash received from sales of land

8650

Purchase of equipment

-39865

-31215

Net cash flows from investing activities

-31215

Cash Flows from Financing Activities:

Issuance of common stock

13075

Issuance of longterm note

16495

Payment of divident

-6370

Purchase of treasury stock

-2615

20585

Net cash flows from financing activities

20585

Cash at the beginning of the period

7510

Cash at the end of the period

11275

ATM SOFTWARE DEVELOPERS

Statement of Cash Flows

For the Year Ended December 31, 2015

Cash Flows from Operating Activities:

Net income

12400

Adjustments to reconcile net income to net cash flows from operating activities in the statement

Depreciation

5465

Increase in account receivable

-4090

Decrease in account payable

-1760

Decrease in inventory

1475

Decrease in prepaid rent

905

14395

Net cash flows from operating activities

14395

Cash Flows from Investing Activities:

Cash received from sales of land

8650

Purchase of equipment

-39865

-31215

Net cash flows from investing activities

-31215

Cash Flows from Financing Activities:

Issuance of common stock

13075

Issuance of longterm note

16495

Payment of divident

-6370

Purchase of treasury stock

-2615

20585

Net cash flows from financing activities

20585

Cash at the beginning of the period

7510

Cash at the end of the period

11275

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