Problem 11-54A Classification of Cash Flows Rolling Meadows Country Club Inc. is a privately owned corporation that operates a golf dub Rolling Meadows reported the following inflows and outflows of cash during 2019 Net income $125,000 7,175 23,300 Decrease in accounts receivable Increase in pro shop inventory increase in prepaid insurance Increase in accounts payable Decrease in wages payable Increase in income taxes payable Cash paid for new golf carts Cash received from sale of used golf carts Depreciation expense (buildings) Depreciation expense (golf carts) Proceeds from issuance of note payable Payment on mortgage payable Cash received from suance of common stock Payment of cash dividends 12,600 13,210 7,400 2,125" 85,000 12,700 35,100 21,250 60,000 42,000 41,375 40,000 Rolling Meadows had cash on hand at 1/1/2019 of $8,500 Cash flows from operating activities Net income 115.000 35.100 21250 Adjustments to reconcilet net income to net cash flow from operating activities Depreciation expense, buildings Depreciation expense, golf carts Decrease in accounts receivable Increase in pro shop inventory Increase in prepaid insurance Increase in accounts payable 7.175 7,125 x 12.600 x 110 Decrease in wages payable 7400 X Increase in income taxes payable 2.125 16 Net cash provided by operating activities Cash flows from investing activities Cash paid for new golf carts Cash received from sale of used golf carts 35.000 x 12.700 72300 x Net cash used for investing activities Cash flows from financing activities: Proceeds from issuance of note payable 60,000 Next 12,700 72.300 X 60.000 Cash received from sale of used golf carts Net cash used for investing activities Cash flows from financing activities: Proceeds from issuance of note payable Payment on mortgage payable Cash from issuance of common stock Cash paid for dividends Net cash provided by financing activities Net increase (decrease) in cash 41.375 X 42,000 X 40,000 x 19,375 108.435 Cash, 1/1/2019 8,500 Cash, 12/31/2019