CHAPTER 12 PROBLEM 12-7A PART (a) only (Warner Company-Page 12-55 through 12-56) The steps necessary to complete the statement of cash flows using the Indirect Method begin in Learning Objective 2 (pp 12-6 through 12-15). The completed statement should resemble the one on PAGE 12-15. It is impossible to complete this assignment without stepping through the example on the above referenced pages. Put your assigned question side by side with the example and walk through the steps. Some items will have the same impact on cash be that positive or negative while others will be the opposite in your facts. CHECK FIGURES ARE AS FOLLOWS: Cash Flows from OPERATING activities $38,500 $ 8,500 Cash Flows from INVESTING activities ($32,000) Cash Flows from FINANCING activities $15,000 Net Increase in cash Cash at Beginning of Period $20,000 $35,000 Cash at End of Period Computer Services Company Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Cash flows from operating activities $145,000 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on disposal of plant assets $ 9,000 3,000 10,000 Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in income taxes payable (5,000) (4,000) 16,000 (2,000) 27,000 Net cash provided by operating activities 172,000 Cash flows from investing activities Purchase of building Purchase of equipment Sale of equipment (120,000) c (25,000) 4,000 Net cash used by investing activities Cash flows from financing activities Issuance of common stock (141,000) 20,000 Payment of cash dividends Net cash used by financing activities (29,000) (9,000) Net increase in cash 22,000 Cash at beginning of period 33,000 $ 55,000 Cash at end of period Noncash investing and financing activities Issuance of bonds payable to purchase land $110,000 CHAPTER 12 PROBLEM 12-7A PART (a) only (Warner Company-Page 12-55 through 12-56) The steps necessary to complete the statement of cash flows using the Indirect Method begin in Learning Objective 2 (pp 12-6 through 12-15). The completed statement should resemble the one on PAGE 12-15. It is impossible to complete this assignment without stepping through the example on the above referenced pages. Put your assigned question side by side with the example and walk through the steps. Some items will have the same impact on cash be that positive or negative while others will be the opposite in your facts. CHECK FIGURES ARE AS FOLLOWS: Cash Flows from OPERATING activities $38,500 $ 8,500 Cash Flows from INVESTING activities ($32,000) Cash Flows from FINANCING activities $15,000 Net Increase in cash Cash at Beginning of Period $20,000 $35,000 Cash at End of Period Computer Services Company Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Cash flows from operating activities $145,000 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on disposal of plant assets $ 9,000 3,000 10,000 Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in income taxes payable (5,000) (4,000) 16,000 (2,000) 27,000 Net cash provided by operating activities 172,000 Cash flows from investing activities Purchase of building Purchase of equipment Sale of equipment (120,000) c (25,000) 4,000 Net cash used by investing activities Cash flows from financing activities Issuance of common stock (141,000) 20,000 Payment of cash dividends Net cash used by financing activities (29,000) (9,000) Net increase in cash 22,000 Cash at beginning of period 33,000 $ 55,000 Cash at end of period Noncash investing and financing activities Issuance of bonds payable to purchase land $110,000