Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease Accounts receivable increase Wages payable decrease Amortization expense $6,000 8,400 3,600 19,200 Cash balance, January 1 36,000 Cash balance, December 31 8,400 Cash paid as dividends 7,200 Cash paid to purchase land 120,000 Cash paid to retire bonds payable at par 90,000 Cash received from issuance of common stock 54,000 Cash received from sale of equipment 14,400 Depreciation expense 46,800 Gain on sale of equipment 16,800 Inventory increase 15,600 Net income 115,200 Prepaid expenses increase 9,600 Remember to use negative signs with answers when appropriate. NEWCASTLE 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 Increase Prepaid Expenses Increase Accounts Payable Decrease Wages Payable 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 $