Seth Erkenbeck, a recent college graduate, has just completed the basic format t

Question

Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).

Listed below in random order are line items to be included in the statement of cash flows.

Prepare the statement of cash flows for ATM Software Developers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands (i.e., 10,000,000 should be entered as "10,000).)

ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the year ended December 31, 2018 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash Cash at the beginning of the period $ 3,165 6,835 Cash at the end of the period $10,000

Explanation / Answer

Cash flow from operating activities :

Cash flow from operating activities Net income 11900 Adjustment to reconcile net income Depreciation expenses 5440 Increase account receivable (4040) Decrease account payable (1735) Decrease inventory 1450 Decrease prepaid rent 880 Net cash flow from operating activities 13895 Cash flow from investing activities Sale of land 8600 Purchase of equipment (39740) Net cash flow from investing activities (31140) Cash flow from financing activities Issue common stock 12950 Purchase treasury stock (2590) Dividend paid (6320) Issue notes payable 16370 Net cash flow from financing activity 20410 Net cash flow 3165 Beginning cash 6835 Ending cash 10000

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