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Preparing a Statement of Cash Flows Erie Company reported the following comparative balance sheets: 2019 2018 Assets: Cash $33,200 $12,750 Accounts receivable 53,000 44,800 Inventory
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Preparing a Statement of Cash Flows
Erie Company reported the following comparative balance sheets:
2019 2018 Assets: Cash $33,200 $12,750 Accounts receivable 53,000 44,800 Inventory 29,500 27,500 Prepaid rent 2,200 6,200 Investments (long-term) 17,600 31,800 Property, plant, and equipment 162,000 149,450 Accumulated depreciation (61,600) (56,200) Total assets $235,900 $216,300 Liabilities and Equity: Accounts payable $16,900 $19,500 Interest payable 3,500 4,800 Wages payable 9,600 7,100 Income taxes payable 5,500 3,600 Notes payable 30,400 53,000 Common stock 100,000 68,500 Retained earnings 70,000 59,800 Total liabilities and equity $235,900 $216,300 Additional Information:
- Net income for 2019 was $19,200.
- Cash dividends of $9,000 were declared and paid during 2019.
- Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additional long-term investments were purchased for $14,400 cash.
- Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for $3,800 cash. New equipment was purchased for $27,350 cash.
- Depreciation expense was $18,900.
- A principal payment of $22,600 was made on long-term notes.
- Common stock was sold for $31,500 cash.
Required:
Prepare a statement of cash flows for Erie, using the indirect method to compute net cash flow from operating activities. Use a minus sign to indicate any decreases in cash or cash outflows. If an answer is zero, enter "0".
Erie Company Statement of Cash Flows For the year ended December 31, 2019 Cash flows from operating activities: - Increase in income taxes payable
- Increase in inventory
- Increase in wages payable
- Net income
- Payment of dividends
- Proceeds from issuance of common stock
$ Adjustments to reconcile net income to net cash provided by operating activities: - Depreciation expense
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
$ - Decrease in wages payable
- Gain on sale of investments
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Repayment of long-term note
- Decrease in wages payable
- Gain on sale of equipment
- Proceeds from issuance of common stock
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Decrease in accounts receivable
- Decrease in wages payable
- Increase in accounts receivable
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Increase in accounts payable
- Increase in inventory
- Net income
- Payment of dividends
- Proceeds, sale of equipment
- Purchase of equipment
- Decrease in prepaid rent
- Decrease in wages payable
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
- Decrease in accounts payable
- Increase in accounts payable
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
- Decrease in interest payable
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
- Increase in wages payable
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
- Increase in income taxes payable
- Proceeds from sale of investments
- Proceeds, sale of equipment
- Purchase of equipment
- Purchase of investments
- Repayment of long-term note
Net cash provided by operating activities $ Cash flows from investing activities: - Gain on sale of equipment
- Increase in accounts receivable
- Increase in income taxes payable
- Increase in inventory
- Increase in wages payable
- Proceeds from sale of investments
$ - Decrease in accounts payable
- Decrease in interest payable
- Decrease in prepaid rent
- Depreciation expense
- Gain on sale of investments
- Purchase of investments
- Decrease in accounts payable
- Decrease in interest payable
- Depreciation expense
- Gain on sale of equipment
- Gain on sale of investments
- Proceeds, sale of equipment
- Decrease in prepaid rent
- Increase in accounts receivable
- Increase in income taxes payable
- Increase in inventory
- Increase in wages payable
- Purchase of equipment
Net cash used for investing activities Cash flows from financing activities: - Decrease in prepaid rent
- Depreciation expense
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts receivable
- Payment of dividends
- Depreciation expense
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts receivable
- Increase in income taxes payable
- Repayment of long-term note
- Depreciation expense
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts receivable
- Proceeds from income taxes payable
- Proceeds from issuance of common stock
Net cash used for financing activities - Decrease in prepaid rent
- Depreciation expense
- Gain on sale of equipment
- Increase in income taxes payable
- Net increase (decrease) in cash
- Net loss in cash amount
$ Cash, 1/1/2019 Cash, 12/31/2019 $
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