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	$8,000
Accounts receivable increase	11,200
Wages payable decrease	4,800
Amortization expense	25,600
Cash balance, January 1	48,000
Cash balance, December 31	11,200
Cash paid as dividends	9,600
Cash paid to purchase land	160,000
Cash paid to retire bonds payable at par	120,000
Cash received from issuance of common stock	72,000
Cash received from sale of equipment	19,200
Depreciation expense	62,400
Gain on sale of equipment	22,400
Inventory increase	20,800
Net income	153,600
Prepaid expenses increase	12,800

Remember to use negative signs withanswers when appropriate.

NEWCASTLE 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 Increase	Answer
Prepaid Expenses Increase	Answer
Accounts Payable Decrease	Answer
Wages Payable 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