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	$11,700
Accounts receivable increase	5,200
Accrued liabilities decrease	3,900
Amortization expense	7,800
Cash balance, beginning of August	28,600
Cash balance, end of August	19,500
Cash paid as dividends	37,700
Cash paid to purchase land	117,000
Cash paid to retire bonds payable at par	78,000
Cash received from issuance of common stock	45,500
Cash received from sale of equipment	22,100
Depreciation expense	37,700
Gain on sale of equipment	5,200
Inventory decrease	16,900
Net income	98,800
Prepaid expenses increase	2,600

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
Answer

	Answer
Add (Deduct) Items to Convert Income to Cash Basis
Depreciation	Answer
Amortization	Answer
Answer

	Answer
Accounts Receivable Increase	Answer
Inventory Decrease	Answer
Prepaid Expenses Increase	Answer
Accounts Payable Increase	Answer
Accrued Liabilities Decrease	Answer
Net Cash Provided by Operating Activities	Answer
Investing Activities
Answer

	Answer
Purchase of Land	Answer
Net Cash Used by Investing Activities	Answer
Financing Activities
Answer

	Answer
Retirement of Bonds Payable	Answer
Payment of Dividends	Answer
Net Cash Used by Financing Activities	Answer
Net change in cash	Answer
Cash at Beginning of Year	Answer
Cash at End of Year	Answer