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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, $45,800

Payment of dividends, $14,400

Ten-year, $31,600 bonds payable were issued at face value

Depreciation expense, $24,900

Building acquired at a cost of $38,400

Accounts receivable decreased by $2,900

Accounts payable decreased by $3,000

Equipment acquired at a cost of $5,100

Inventories increased by $5,700

Beginning cash balance, $30,100

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

ROCKY HORROR PICTURE CO.
Statement of Cash Flows
For Year Ended December 31, 2016
Net Cash Flow From Operating Activities
Net income 45800
Adjustments for differences between income flows and cash flows from operating activities:
Add: Depreciation expense 24900
Add: Decrease in accounts receivable 2900
Less: Increase in inventories -5700
Less: Decrease in accounts payable -3000
Net cash provided by operating activities 64900
Cash Flows From Investing Activities
Payment for purchase of building -38400
Payment for purchase of equipment -5100
Net cash used for investing activities -43500
Cash Flows From Financing Activities
Payment of dividends -14400
Receipt from issuance of bonds 31600
Net cash provided by financing activities 17200
Net increase in cash 38600
Cash, January 1, 2016 30100
Cash, December 31, 2016 68700

ekkarill92 answered 2 years ago
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