In: Accounting
he following information is available for Marin Corporation for
the year ended December 31, 2022.
Beginning cash balance | $36,000 | |
Accounts payable decrease | 3,400 | |
Depreciation expense | 82,000 | |
Accounts receivable increase | 9,200 | |
Inventory increase | 14,100 | |
Net income | 316,000 | |
Cash received for sale of land at book value | 36,000 | |
Sales revenue | 744,000 | |
Cash dividends paid | 11,600 | |
Income tax payable increase | 4,600 | |
Cash used to purchase building | 142,500 | |
Cash used to purchase treasury stock | 30,800 | |
Cash received from issuing bonds | 223,000 |
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).)
Solution
Marin Corporation | ||
Statement of Cash Flows (Partial) | ||
For the Year Ended December 31, 2022 | ||
A. Cash Flows from Operating Activity | ||
Net Income | $ 316,000.00 | |
Adjustments to reconcile net income to net cash flows from Operating Activities | ||
Depreciation expense | $ 82,000.00 | |
Changes In Current Operating Assets Liabilities | ||
Increase in Accounts Receivable | $ (9,200.00) | |
Increase in Inventory | $ (14,100.00) | |
Decrease in Accounts Payable | $ (3,400.00) | |
Increase in Income taxes payable | $ 4,600.00 | |
$ 59,900.00 | ||
Net cash flow from Operating activities | $ 375,900.00 |