Question 2 The following information is available for Blue Spruce Corp.for the y

Question

Question 2 The following information is available for Blue Spruce Corp.for the year ended December 31, 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 $47,520 3,907 171,072 8,659 11,616 300,010 36,960 12,672 4,963 305,184 27,456 211,200 ho 4a Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a sign eg. -15,000 or in parenthesis e.g. (15,000).) ho

Explanation / Answer

Blue Spruce Corp.

Statement of cash flows

For the year ended Dece,ber 31, 2017.

Cash flows from Operating activities : Net Income 300,010 Adjustments to reconcile net income to net cash provided by operating activities : Depreciation expense 171,072 Decrease in Accounts payable (3,907) Increase in Accounts receiveable (8,659) Increase in Inventory (11,616) Increase in Income taxes payable 4,963 Net cash provided by operating activities 451,863 Cash flows from Investing activities : Cash received from sale of land 36,960 Cash paid for building (305,184) Net cash used in Investing activities (268,224) Cash flows from financing activities : Cash dividends paid (12,672) Cash used to purchase treasury stock (27,456) Cash received from issuing bonds 211,200 Net cash provided by financing activities 171,072 Net increase in cash 354,711 Beginning cash balance 47,520 Ending cash balance 402,231

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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