edugen Gradcbook ORIONDable eTextbosk Exercise 12-7 The following three accounts

Question

edugen Gradcbook ORIONDable eTextbosk Exercise 12-7 The following three accounts appear in the general ledger of Blue Spruce Corp. during 2019. 12 an Balance uly 31 Parchase of equiment Sept. 2 Costof endprnent constructed Nov. 10 Cost of equipment sold Debit Credit Balance 158,400 230,000 282,800 48,400 234,400 71,600 52,800 too. 10 Dec. 31 Depreciation for year Accumulated depreciation on equipment sold 29,300 23,00 65.200 05,100 lug 23 Dividends (cash) Dec 31et income 15,800 700 15700 From the postings in the accounts, ndicate how the information i is reported on a statement of cash flows using the indirect method. The loss on equipment constructed is reported in the Investing activities section as a disposal of plast F3 F5 F6 F8 F9 F10 F11 F12 PrtSPae

Explanation / Answer

STATEMENT OF CASH FLOW FOR THE YEAR ENDED (PARTIAL) A) Cash flows from operating activities Amount Amount Net Income $             67,700 Adjustments for: Depreciation $             23,600 Loss on disposal of plant assets $                5,900 $             29,500 Adjustement for increase and decrease in Assets & Liabilities $                       -   Net cash from operating activities $             97,200 Cash flows from investing activities Purchase of Equipment $            -71,600 Equipment contructed $            -52,800 Sale of Equipmet( 48400 - 5900) $             42,500 Sale os long term investment in stock Cash flows from investing activities $            -81,900 Cash flows from Financing activities Dividend Paid $            -15,800 $            -15,800

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