Good day,

Attached below is a Statement of Cash Flow -Indirect Method question I am having difficulty with.

I believe I have calculated the Net Income, Amortization, Increase in Inventory (that is subtracted from the Net Income), Increase in Account Receivables that will be subtracted (net value as I already subtracted the Allowance for doubtful accounts), increase in Accounts Payable added to net income. I believe you subtract the decrease in Short Term Notes Payable from the Net Income.

I am lost as to how to get the Depreciation Expenses, the loss on sale of equipment. How to figure in the part III, and IV into the SCF. Any help will be greatly appreciated

The comparative Statement of Financial Position of Pennywise Inc. provides the following information. Sep 30, 2016 Sep 30, 2015 Cash 100,500 39,000 Accounts Receivable 36,750 30,000 Inventory 36,000 27,000 Patent 15,000 18,750 0 9,000 135,000 60,000 0 89,250 323,250 273,000 Shortterm Note Payable 9,000 12,000 Longterm Note Payable 93,000 75,000 Dividends Payable 0 15,000 Accounts Payable 15,000 9,000 Accumulated Depreciation - Motor Vehicle 6,000 13,500 0 18,000 Allowance for Doubtful Accounts 9,000 13,500 Retained Earnings 62,250 18,000 Share Capital Ordinary 129,000 99,000 Total 323,250 273,000 Equity Investment (nontrading) Motor Vehicle Building Total Accumulated Depreciation - Building Additional information related to the year ended September 30, 2016: I Motor Vehicle that had cost $33,000 and was 40% depreciated at the time of disposal was sold for $7,500. II Cash was paid for the acquisition of Motor vehicle. III On October 1, 2015, the building was completely destroyed in a natural disaster. Insurance proceeds on the building were $96,000. IV The Equity investment were sold for $5,100 above its cost. V Ordinary share were issued for cash during the year. VI No dividends were declared during the year. Required: Prepare the Statement of Cash Flows for 2016 using the indirect method