Statement of Cash Flows — Indirect Method Required: Prepare a statement of cash

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Statement of Cash Flows—Indirect Method

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Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

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Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: $ Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities $ Cash flows from investing activities: $ $ Net cash flow used for investing activities Cash flows from financing activities: $ $ Net cash flow from financing activities $ Cash at beginning of the year Cash at end of the year $

Explanation / Answer

Ans-

Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: $ Adjustments to reconcile net loss to net cash flow from operating activities: -35320 Add-Depreciation (26280+29340) 55620 Add-Dividend paid Changes in current operating assets and liabilities: Increase in accounts receivable -66960 Increase in Inventories -105480 Decrease in prepaid expense 5760 Decrease in Accounts payable -35820 Net cash flow used for operating activities -182200 Cash flows from investing activities: Sale of land 163800 Purchase of buliding -561600 Puchase of equipment -104400 Net cash flow used for investing activities -502200 Cash flows from financing activities: Issue of bond 270000 Issue of common stock 400000 Dividend paid -32400 Net cash flow from financing activities 637600 Net cash increase/decrease during the year -46800 Cash at beginning of the year 968400 Cash at end of the year 921600

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