Question

The following information is available for Kingbird Corporation for the year ended December 31, 2022.

Beginning cash balance		$36,000
Accounts payable decrease		3,000
Depreciation expense		85,000
Accounts receivable increase		8,700
Inventory increase		14,100
Net income		298,500
Cash received for sale of land at book value		36,000
Sales revenue		740,500
Cash dividends paid		11,500
Income tax payable increase		4,200
Cash used to purchase building		147,500
Cash used to purchase treasury stock		38,800
Cash received from issuing bonds		203,000

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Answer

Kingbird Corporation Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2022
Cash flows from operating Activities:
Net Income		298500
Adjustments to reconcile net income
Depreciation expenses	85000
Accounts Receivables Increase	(8700)
Inventory Increase	(14100)
Accounts Payable Decrease	(3000)
Income taxes payable Increase	4200	63400
Net Cash Provided by Operating activities		361900
Cash flows from Investing Activities
Cash received for sale of land	36000
Cash used to purchase of Building	(147500)
Net Cash provided by operating activities		(111500)
Cash Flows from Financing Activities
CAsh dividends paid	(11500)
Cash used to purchase of treasury stock	(38800)
Cash received from issuing bonds	203000
Net Cash provided by Financing activities		152700
Net increase in cash		403100
Beginning cash balance		36000
Ending case Balance		439100