Natalie Daniels has completed the basic format to be used in preparing the state

Question

Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s). CPU HARDWARE DESIGNERS 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 $ (49,600) Cash at the beginning of the period 72,000 Cash at the end of the period $ 22,400 Below, in random order, are line items to be included in the statement of cash flows. Cash received from the sale of land $ 2,200 Issuance of common stock 210,000 Depreciation expense 30,000 Increase in accounts receivable 52,000 Increase in accounts payable 10,000 Loss on sale of land 6,200 Purchase of equipment 212,000 Increase in inventory 22,000 Increase in prepaid rent 10,000 Payment of dividends 32,000 Net income 62,000 Repayment of notes payable 42,000

Prepare the statement of cash flows for CPU Hardware Designers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands.)

Required:

Prepare the statement of cash flows for CPU Hardware Designers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands.)

Explanation / Answer

Cash Flow Statement

Cash flows from operating activities Amount $ Net Income              62,000.00 Adjustment to Non Cash Effect Depreciation expense              30,000.00 Loss on sale of Land                6,200.00 Changes in operating assets and liabilities Increase in Accounts Receivable -52000 Increase in Inventory            (22,000.00) Increase in Accounts Payable              10,000.00 Increase in Prepaid Expenses            (10,000.00) Net cash from operating activities              24,200.00 Cash flows from investing activities Sale of Land 2200 Purchase of equipment -212000 Net cash used in investing activities           (209,800.00) Cash flows from financing activities Issuance Of Common stock             210,000.00 Repayment of Notes payable            (42,000.00) Payments of dividend -32000 Net cash used in financing activities             136,000.00 Net Increase in cash and cash equivalents          (49,600.00) Cash and cash equivalents at beginning of period             72,000.00 Cash and cash equivalents at end of period             22,400.00

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