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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
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-cunsatis ratio Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 $13.500 6,000 4.500 9,000 33.000 Cash balance, December 31 22.500 Cash paid as dividends 43,500 Cash paid to purchase land 135,000 Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from sale of equipment 90,000 52.500 25.500 Depreciation expense 43,500 Gain on sale of equipment 6.000 Inventory decrease 19,500 Net income 114,000 Prepaid expenses increase 3,000 Average current liabilities 150,000 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 Add (deduct) items to convert net income to cash basis Depreciation Amortization Gain on Sale of Equipment Accounts Receivable Increase Inventory Decrease Prepaid Expenses Increase Accounts Payable Increase Accrued Liabilities Decrease Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Equipment Purchase of Land Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Common Stock Retirement of Bonds Payable Payment of Dividends Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Year Cash at End of Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)
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