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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 Lund's operating-cash-flow-to-current-liabilities ratio.

Accounts payable increase $14,400
Accounts receivable increase 6,400
Accrued liabilities decrease 4,800
Amortization expense 9,600
Cash balance, January 1 35,200
Cash balance, December 31 24,000
Cash paid as dividends 46,400
Cash paid to purchase land 144,000
Cash paid to retire bonds payable at par 96,000
Cash received from issuance of common stock 56,000
Cash received from sale of equipment 27,200
Depreciation expense 46,400
Gain on sale of equipment 6,400
Inventory decrease 20,800
Net income 121,600
Prepaid expenses increase 3,200
Average current liabilities 160,000

a. Use negative signs with cash outflow answers.

LUND 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 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

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