Problem 11-54A Classification of Cash Flows Rolling Meadows Country Club Inc. is a privately owned corporation that operates a golf club. Rolling Meadows reported the following inflows and outflows of cash during 2019: Net income $125,800 7,175 23,300 12,600 13,210 7,400 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) 2,125 85,000 12,700 35,100 21,250 Proceeds from issuance of note payable 60,000 42,000 Payment on mortgage payable Cash received from Issuance of common stock 41,375 Payment of cash dividends 40,000 Required: Prepare a property formatted statement of cash flows using the indirect method. Use a minus sign to indicate any decreases in cash or cash outflows. Rolling Meadows Country Club Inc. Statement of Cash Flows For the year ended December 31, 2019 Cash flows from operating activities: Net Income 115.300 x Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense, buildings 48,300 X Depreciation expense, golf carts 23,700 Decrease in accounts receivable $175 x Increase in pro shop inventory 26,600X Increase in prepaid insurance 15,800 X Increase in accounts payable 7.500 X Decrease in wages payable Increase in income taxes payable 7.500 X 32,165 X Net cash provided by operating activities 147,465 X Cash flows from investing activities: Cash naid for new golf carts 25,000 15.00 9,210 X *** 115,000 X 9.200 105,800 x Cash flows from Investing activities: Cash paid for new golf carts 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 Correct 45,000 X 28,000 X 38,500 X 45,000 X 66,500 X Net cash provided by financing activities Net Increase (decrease) in cash v 105,165 X 10,280 X Cash, 1/1/2019 118,445 X Cash, 12/31/2019