On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. (Q.9)

Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000.

	Current year	Prior year
Assets
Cash	$65,000	$54,000
Accounts receivable (net)	78,000	85,000
Inventories	106,500	90,000
Land	-	20,000
Equipment	495,000	370,000
Accumulated depreciation	(215,000)	(158,000)
Total assets	$ 529,500	$461,000
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$53,500	$55,000
Common stock, $10 par	200,000	170,000
Paid-in capital in excess of parcommon stock	62,000	60,000
Retained earnings	214,000	176,000
Total liabilities and stockholders' equity	$ 529,500	$461,000

Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Branch Co.
Statement of Cash Flows
For Year Ended December 31
Cash flows from operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:
	$
Changes in current operating assets and liabilities:
Net cash flow from operating activities		$
Cash flows from investing activities:
	$
Net cash flow used for investing activities
Cash flows from financing activities:
	$
Net cash flow provided by financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$