Given only, the following information, answer the questionsbelow. Increases and Decreases represent the change from prior yearto current year. (Note to you are not told what the change in cashwas for the year.)
Decrease in Accounts Receivable 32,000
Increase in Inventory 5,000
Increase in Property Plant and Equipment 10,000
Increase in Long –Term Investments 50,000
Increase in Long-Term Bonds Payable 120,000
Decrease in Accounts Payable 15,000
Increase in Retained Earnings 127,000
Increase in Common Stock 18,000
Increase in Salaries Payable 12,000
Decrease in Prepaid Expenses 7,000
Increase in Unearned Revenue 11,000
Increase in Accumulated Depreciation 15,000
Decrease in Dividends Payable 3,000
Other Info: Equipment was sold in the current year with originalcost of $12,000 and a book value of $8,000 for cash proceeds of$6,000. Assume the increase in Long-Term Investments was thepurchase of shares of another company. The company declared a$10,000 cash dividend during the year.
a)What amount would be included on the statement of cash flowsunder “Cash flows from Operating Activities”? USE THE INDIRECTMETHOD TO SOLVE. b)What amount would be included on the statementof cash flows under “Cash flows from Investing Activities”? c)Whatamount would be included on the statement of cash flows under “Cashflows from Financing Activities”?
