Rockford Company Statement of Cash Flows-Indirect Method For This Year Ended December 31 (dollars in millions) Operating Activities Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in accrued liabilities Increase in income taxes payable Loss on sale of equipment $29 90 (45) 3 (80) Net cash provided by (used in) operating activities 484 Investing Activities \begin{tabular}{lr|} Additions to property, plant, and equipment & (133) \\ Proceeds from sale of long-term investments & 15 \\ Proceeds from sale of equipment & 3 \\ Net cash provided by (used in) investing activities & \end{tabular} Financing Activities Issuance of bonds 95 Cash dividends paid Net cash provided by (used in) financing activities (48) Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents $66 Rockford Company Statement of Cash Flows-Indirect Method For This Year Ended December 31 (dollars in millions) Operating Activities Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in accrued liabilities Increase in income taxes payable Loss on sale of equipment $29 90 (45) 3 (80) Net cash provided by (used in) operating activities 484 Investing Activities \begin{tabular}{lr|} Additions to property, plant, and equipment & (133) \\ Proceeds from sale of long-term investments & 15 \\ Proceeds from sale of equipment & 3 \\ Net cash provided by (used in) investing activities & \end{tabular} Financing Activities Issuance of bonds 95 Cash dividends paid Net cash provided by (used in) financing activities (48) Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents $66