In: Accounting
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 | ||
$ | ||
$ | ||
$ |
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 | |