Statement of Cash Flows The following are several items involving the cash flow
ID: 2333058 • Letter: S
Question
Statement of Cash Flows
The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:
Net income, $45,800
Payment of dividends, $14,400
Ten-year, $31,600 bonds payable were issued at face value
Depreciation expense, $24,900
Building acquired at a cost of $38,400
Accounts receivable decreased by $2,900
Accounts payable decreased by $3,000
Equipment acquired at a cost of $5,100
Inventories increased by $5,700
Beginning cash balance, $30,100
Required:
Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.
ROCKY HORROR PICTURE CO. Statement of Cash Flows For Year Ended December 31, 2016 Net Cash Flow From Operating Activities $ Adjustments for differences between income flows and cash flows from operating activities: $ Cash Flows From Investing Activities $ Cash Flows From Financing Activities $ $ $Explanation / Answer
ROCKY HORROR PICTURE CO. Statement of Cash Flows For Year Ended December 31, 2016 Net Cash Flow From Operating Activities Net income 45800 Adjustments for differences between income flows and cash flows from operating activities: Add: Depreciation expense 24900 Add: Decrease in accounts receivable 2900 Less: Increase in inventories -5700 Less: Decrease in accounts payable -3000 Net cash provided by operating activities 64900 Cash Flows From Investing Activities Payment for purchase of building -38400 Payment for purchase of equipment -5100 Net cash used for investing activities -43500 Cash Flows From Financing Activities Payment of dividends -14400 Receipt from issuance of bonds 31600 Net cash provided by financing activities 17200 Net increase in cash 38600 Cash, January 1, 2016 30100 Cash, December 31, 2016 68700
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