Question
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment Increase in inventory $ 227,000 30,000 9,000 Increase in prepaid rent Payment of dividends 39,000 Depreciation expense 13,000 Increase in accounts receivable 48,000 Increase ccounts payable 24,000 Loss on sale of land 13,000 Net income 67,000 Repayment of notes payable 40,000 Cash received from the sale of land Issuance of common stock 5,000 246,000 Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) CEO CONSULTANTS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments econcile net income to net cash flows from operating activities: Net cash flows from operating activities $ 0 Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash Cash at the beginning of the period i Cash at the end of the period 0 0 (25,000) 100,000 $ 75,000
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