Statement of Cash Flows (Indirect Method) Use the following information about Lund Corporation for the month of August to prepare a statement of cash flows for August under the indirect method. Accounts payable increase $9,000 Accounts receivable increase 4,000 Accrued liabilities decrease 3,000 Amortization expense 6,000 Cash balance, beginning of August 22,000 Cash balance, end of August 15,000 Cash paid as dividends 29,000 Cash paid to purchase land 90,000 Cash paid to retire bonds payable at par 60,000 Cash received from issuance of common stock 35,000 Cash received from sale of equipment Depreciation expense Gain on sale of equipment Inventory decrease Net income Prepaid expenses increase 17,000 29,000 4,000 13,000 76,000 2,000 Note: Use negative signs with your answers to indicate a decrease in cash (use of cash). LUND CORPORATION Statement of Cash Flows For the Month of August Operating Activities Net income 76,000 Add (Deduct) items to Convert Income to Cash Basis Depreciation 29,000 Amortization 6,000- Gain on Sale of Equipment = (4,000) Accounts Receivable Increase (4,000) Inventory Decrease Prepaid Expenses Increase Accounts Payable increase Accrued Liabilities Decrease Net Cash Provided by Operating Activities Investing Activities 13.000 (2,000) 4,000 x (3,000) 115,000 x Sale of Equipment Purchase of Land Net Cash Used by Investing Activities Financing Activities Issuance of Common Stock Retirement of Bonds Payable Payment of Dividends Net Cash Used by Financing Activities Net change in cash Cash at Beginning of Year Cash at End of Year 17,000- (90.000) (73,000) 35,000 (60,000) (29,000) (54,000) 180,000 x 180.000 x $ 288,000 x