Splish Brothers Company reported net income of $370,000 for the current year. Depreciation recorded on buildings and equipment amounted to $78,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable Inventory Accounts payable End of Year $23,000 30,000 55,500 10,100 Beginning of Year $17.500 40,000 68,500 17,700 Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg. (15,000).) SPLISH BROTHERS COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to Accounts receivable Inventory Accounts payable 30,000 55,500 10,100 Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show ar that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis eg. (15,000).) SPLISH BROTHERS COMPANY Partial Statement of Cash Flows 40,000 68,500 17,700 Adjustments to reconcile net income to Assuming a statement of cash flows is prepared using the indirect method, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following terms to indicate the appropriate category under which the item would appear on the statement of cash flows. 2. Inventory increased during the period 3. 4. 5. 6. Common stock is issued for cash at an amount above par value 7. 8. 9. 10. Depreciation expense recorded for the period Building was purchased for cash Bonds payable were acquired and retired at their carrying value Accounts payable decreased during the period Prepaid expenses decreased during the period Treasury stock was acquired for cash Land is sold for cash at an amount equal to book value Patent amortization expense recorded for a period Category