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Statement of Cash Flows (Indirect Method)
Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method:
| Accounts payable increase | $14,000 |
| Accounts receivable increase | 7,000 |
| Accrued liabilities decrease | 5,000 |
| Amortization expense | 31,000 |
| Cash balance, January 1 | 21,000 |
| Cash balance, December 31 | 141,000 |
| Cash paid as dividends | 41,000 |
| Cash paid to purchase land | 81,000 |
| Cash paid to retire bonds payable at par | 70,000 |
| Cash received from issuance of common stock | 75,000 |
| Cash received from sale of equipment | 17,000 |
| Depreciation expense | 65,000 |
| Gain on sale of equipment | 12,000 |
| Inventory decrease | 11,000 |
| Net income | 126,000 |
| Prepaid expenses increase | 3,000 |
Remember to use negative signs with answers when appropriate.
| FREMONT CORPORATION Statement of Cash Flows For Year Ended December 31 |
| Cash Flow from Operating Activities |
| Net Income | Answer |
| Add (deduct) items to convert net income to cash basis |
| Depreciation | Answer |
| Amortization | Answer |
| Gain on Sale of Equipment | Answer |
| Accounts Receivable Increase | Answer |
| Inventory Decrease | Answer |
| Prepaid Expenses Increase | Answer |
| Accounts Payable Increase | Answer |
| Accrued Liabilities Decrease | Answer |
| Cash Flow Provided by Operating Activities | Answer |
| Cash Flow from Investing Activities |
| Sale of Equipment | Answer |
| Purchase of Land | Answer |
| Cash Used by Investing Activities | Answer |
| Cash Flow from Financing Activities |
| Issuance of Common Stock | Answer |
| Retirement of Bonds Payable | Answer |
| Payment of Dividends | Answer |
| Cash Used by Financing Activities | Answer |
| Net Increase in Cash | Answer |
| Cash at Beginning of Year | Answer |
| Cash at End of Year | Answer |
Answer & Explanation
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