The following income statement and information about changes in noncash current

Question

The following income statement and information about changes in noncash current assets and current liabilities are reported. Changes in current asset and current liability accounts for the year that relate to operations follow. Required: Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Equipment with a book value of $82,500 and an original cost of $162,000 was sold at a loss of $35,000. Paid $106,000 cash for a new truck. Sold land costing $330, 000 for $415,000 cash, yielding a gain of $85,000. Long-term investments in stock were sold for $92,800 cash, yielding a gain of $14,000. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Explanation / Answer

(14)

Note: First question is answered.

CASH FLOW FROM OPERATING ACTIVITIES $ Net Income 5,22,600 Add: Depreciation 40,200 Add: Amortization 5,025 Less: Gain on Sale of Equipment -6,700 Less: Increase in Current Assets      Accounts receivables -41,100      Inventories -35,325 Less: Decrease in Current Liabilities      Accounts Payable -15,650      Salaries payable -2,750 NET CASH FLOW FROM OPERATING ACTIVITIES 4,66,300

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