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	$12,600
Accounts receivable increase	5,600
Accrued liabilities decrease	4,200
Amortization expense	8,400
Cash balance, beginning of August	30,800
Cash balance, end of August	21,000
Cash paid as dividends	40,600
Cash paid to purchase land	126,000
Cash paid to retire bonds payable at par	84,000
Cash received from issuance of common stock	49,000
Cash received from sale of equipment	23,800
Depreciation expense	40,600
Gain on sale of equipment	5,600
Inventory decrease	18,200
Net income	106,400
Prepaid expenses increase	2,800

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
AnswerDepreciationGain on Sale of EquipmentIssuance of Bonds PayableIssuance of Common StockNet incomePurchase of PPESale of Equipment	Answer
Add (Deduct) Items to Convert Income to Cash Basis
Depreciation	Answer
Amortization	Answer
AnswerDepreciationGain on Sale of EquipmentIssuance of Bonds PayableIssuance of Common StockNet incomePurchase of PPESale of Equipment	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
AnswerDepreciationGain on Sale of EquipmentIssuance of Bonds PayableIssuance of Common StockNet incomePurchase of PPESale of Equipment	Answer
Purchase of Land	Answer
Net Cash Used by Investing Activities	Answer
Financing Activities
AnswerDepreciationGain on Sale of EquipmentIssuance of Bonds PayableIssuance of Common StockNet incomePurchase of PPESale of Equipment	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