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Statement of Cash Flows The following are several items involving the cash flow activities of the...

Statement of Cash Flows

The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:

Net income, $43300

Payment of dividends, $15600

Ten-year, $36100 bonds payable were issued at face value

Depreciation expense, $20600

Building was acquired at a cost of $36400

Accounts receivable decreased by $1800

Accounts payable decreased by $4600

Equipment was acquired at a cost of $6600

Inventories increased by $6100

Beginning cash balance, $16500

Required:

Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.

ROCKY HORROR PICTURE CO.
Statement of Cash Flows
For Year Ended December 31, 2016
Net Cash Flow From Operating Activities
$
Adjustments for differences between income flows and cash flows from operating activities:
$
Cash Flows From Investing Activities
$
Cash Flows From Financing Activities
$
$
$

Solutions

Expert Solution

Answer:-

Rocky Horror Picture's
Statement of Cash Flow (Using Indirect Method)
For the year ended December 31,2016
Particulars Amount
$
Cash flow from opreating activities
Net Income 43300
Adjustments to reconcile net income to net cash provided by opreating activities
Adjustment for non cash effects
Depreciation 20600
Change in opreating assets & liabilities
Decrease in Accounts Receiviable 1800
Increase in Inventories -6100
Decrease in Accounts payable -4600
Net cash flow from opreating activities (a) 55000
Cash Flow from Financing activities
Cash dividends paid -15600
Bonds Issued 36100
Net cash Flow from Financing activities (b) 20500
Cash Flow from Investing activities
Purchase of Equipment -6600
Purchase of Building -36400
Net cash Flow from Investing activities (c) -43000
Net Channge in cash c=a+b+c 32500
Beginning cash balance 16500
Closing cash balance 49000

ekkarill92 answered 1 year ago
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