Natalie Daniels has completed the basic format to be used in preparing the state

Question

Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s).

  

Below, in random order, are line items to be included in the statement of cash flows.

   

  

Prepare the statement of cash flows for CPU Hardware Designers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands.)

Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s).

Explanation / Answer

the statement of cash flows for CPU Hardware Designers using the indirect method

Cash flow from operating activities: Net income 61000 Adjustments for noncash effects: Add depreciation expense 31000 Add loss on sale of land 6100 Changes in current assets and current liabilities: Less increase in prepaid expense (11000) Less increase in inventory (21000) Less increase in account receivable (51000) Add increase in account payable 11000 (34900) Net cash flow from operating activities 26100 Cash Flows from Investing Activities: Sale of land 2100 Purchase of equipment (211000) Net cash flow from investing activities (208900) Cash flow from financing activities: Issue of common stock 205000 Less payment of dividend (31000) Less repayment of notes payable (41000) Net cash flow from financing activities 133000 Net increase(decrease)in cash (49800) Cash at the beginning of period 71000 Cash at the end of period 21200

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