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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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