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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 Lunds operating-cash-flow-to-current-liabilities ratio.
Accounts payable increase | $9,000 |
Accounts receivable increase | 4,000 |
Accrued liabilities decrease | 3,000 |
Amortization expense | 6,000 |
Cash balance, January 1 | 22,000 |
Cash balance, December 31 | 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 | 17,000 |
Depreciation expense | 29,000 |
Gain on sale of equipment | 4,000 |
Inventory decrease | 13,000 |
Net income | 76,000 |
Prepaid expenses increase | 2,000 |
Average current liabilities | 100,000 |
a.
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 Decrease | Answer |
Prepaid Expenses Increase | Answer |
Accounts Payable Increase | Answer |
Accrued Liabilities 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 |
b.Operating-cash-flow-to-current-liabilities ratioAnswer
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