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9.3. The following data are taken from the records of Saro Corporation and subsidiaries for Year 1: Net income .....mmm $10,000 Depreciation, depletion, and amortization
9.3. The following data are taken from the records of Saro Corporation and subsidiaries for Year 1: Net income .....mmm $10,000 Depreciation, depletion, and amortization ....... 8,000 Disposals of property, plant, and equipment (book value) for cash ..... 1,000 Deferred income taxes for Year 1 (noncurrent) ...... 400 Undistributed earnings of unconsolidated affiliates ...mmmmmmmull 200 Amortization of discount on bonds payable .....mmmmmm! 50 Amortization of premium on bonds payable ...... 60 Decrease in noncurrent assets .. 1,500 Cash proceeds from exercise of stock options 300 Increase in accounts receivable . 900 Increase in accounts payable 1,200 Decrease in inventories 850 Increase in dividends payable ........mmmmmm 300 Decrease in notes payable to banks .... . . 400 Required: a) Determine the amount of cash flows from operations for Year 1 (use the indirect format). b) Using the income statement and balance sheets of Company X below, prepare a statement of cash flows for the year ended December 31, Year 9, using the indirect and direct method
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