eta TV EVRIES CUP 1. Annapolis Company reported net income of $365,000 for the current year. Depreciation recorded on buildings and equipment amounted to $73,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $22.000 $15.000 Accounts receivable 17 000 32.000 Inventory 55,000 65,000 Prepaid insurance 7,500 5.000 Accounts payable 11,000 18.000 Income taxes payable 600 1.200 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. 2. Use the following information to perform the calculations below (using the indirect method). Clearly label the amount of each answer as positive or negative and show all your calculations. Net income Depreciation expense Beginning accounts receivable Ending accounts receivable Beginning inventory Ending inventory Beginning prepaid expenses Ending prepaid expenses $401,000 97,000 420,000 439,000 516,000 550,000 42,000 48,000 Beginning accounts payable Ending accounts payable Purchase of long-term assets Issuance of long-term debt Issuance of stock for cash Issuance of stock for long-term assets Purchase of treasury stock Sale of long-term investment at cost $119,000 146,000 612,000 220,000 180,000 110,000 64,000 56,000 a. Calculate the amount of cash flows from operating activities. b. Calculate the amount of cash flows from investing activities. c. Calculate the amount of cash flows from financing activities. d. Calculate the net change in cash. Workshop #1 - Chapters 12, 13 Tuesday, February 11, 2020 Page 1