Statement of Cash Flows (Indirect Method) Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio.

Accounts payable increase	$14,400
Accounts receivable increase	6,400
Accrued liabilities decrease	4,800
Amortization expense	9,600
Cash balance, January 1	35,200
Cash balance, December 31	24,000
Cash paid as dividends	46,400
Cash paid to purchase land	144,000
Cash paid to retire bonds payable at par	96,000
Cash received from issuance of common stock	56,000
Cash received from sale of equipment	27,200
Depreciation expense	46,400
Gain on sale of equipment	6,400
Inventory decrease	20,800
Net income	121,600
Prepaid expenses increase	3,200
Average current liabilities	160,000

a. Use negative signs with cash outflow answers.

LUND CORPORATION Statement of Cash Flows For Year Ended December 31
Cash Flow from Operating Activities
Net Income	$Answer
Add (deduct) items to convert net income to cash basis
Depreciation	Answer
Amortization	Answer
Gain on Sale of Equipment	Answer
Accounts Receivable Increase	Answer
Inventory Decrease	Answer
Prepaid Expenses Increase	Answer
Accounts Payable Increase	Answer
Accrued Liabilities Decrease	Answer
Cash Flow Provided by Operating Activities	Answer
Cash Flow from Investing Activities
Sale of Equipment	Answer
Purchase of Land	Answer
Cash Used by Investing Activities	Answer
Cash Flow from Financing Activities
Issuance of Common Stock	Answer
Retirement of Bonds Payable	Answer
Payment of Dividends	Answer
Cash Used by Financing Activities	Answer
Net Decrease in Cash	Answer
Cash at Beginning of Year	Answer
Cash at End of Year	$Answer

b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)

Answer