E 12-5. Prepare statement of cash flows-indirect method (LO 2), AP The following

Question

E 12-5. Prepare statement of cash flows-indirect method (LO 2), AP The following information is available for Stamos Corporation for the year 2017. Beginning cash balance Accounts payable decrease Depreciation expense Accounts receivable increase Inventory increase Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable increase Cash used to purchase building Cash used to purchase treasury stock Cash received from issuing bonds $ 45,000 3,700 162,000 8,200 11,000 284,100 35,000 12,000 4,700 289,000 26,000 200,000 Instructions Prepare a statement of cash flows using the indirect method.

Explanation / Answer

Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities: Net income 284100 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 162000 Increase in Accounts receivables -8200 Increase in inventory -11000 Decrease in accounts payable -3700 Increase in income taxes payable 4700 143800 Net cash provided by operating activities 427900 Cash Flows from Investing Activities: Purchase of Building -289000 Sale of Land 35000 Net Cash Provided by Investing Activities -254000 Cash Flows from Financing Activities Payment of Cash Dividends -12000 Purchase of treasury stock -26000 Proceeds of Bonds Payable 200000 Net Cash Used by Financing Activities 162000 Net Increase in Cash 335900 Cash at Beginning of Period 45000 Cash at End of Period 380900

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.