CASH FLOW STATEMENTS: FRS 107 Question 1

i. During the year company had net income of $96,000

ii. Building and equipment depreciation expenses of $80,000 and $60,000, respectively.

iii. It amortized intangible assets in the amount of $20,000;

iv. purchased investments for $116,000; sold investments for $150,000 on which it recorded a gain of $34,000

v. Issued of long-term bonds at face value;

vi. Purchased land and a warehouse through a $320,000 mortgage;

vii. Paid $40,000 to reduce the mortgage; viii. Borrowed $60,000 by issuing notes payable;

ix. repaid notes payable in the amount of $180,000;

x. Declared and paid cash dividends in the amount Of $36,000 and

xi. Purchased treasury stock in the amount of $20,000

Required: Using the indirect method, prepare a statement of cash flows for Karidis Ceramics, Inc.