Statement of Cash Flows

The following items involve the cash flow activities of Rocky Horror Picture Co.:

1. Net income, $40,500
2. Payment of dividends, $16,000
3. Ten-year, $38,900 bonds payable were issued at face value
4. Depreciation expense, $23,500
5. Building acquired at a cost of $34,900
6. Accounts receivable decreased by $3,300
7. Accounts payable decreased by $4,200
8. Equipment acquired at a cost of $7,300
9. Inventories increased by $6,500
10. Beginning cash balance, $29,400

Required:

Prepare Rocky Horror Pictures statement of cash flows using the indirect method.

Operating Activities:
Cash, January 1Cash, December 31Net incomeSales	$- Select -
Adjustments for differences between net income and cash flows from operating activities:
Depreciation expensePayment for purchase of equipmentPayment of dividendsReceipt from issuance of bonds	- Select -
Decrease in accounts receivableNet incomePayment of dividendsReceipt from issuance of bonds	- Select -
Increase in inventoriesPayment for purchase of equipmentPayment for purchase of buildingPayment of dividends	- Select -
Decrease in accounts payablePayment for purchase of equipmentPayment for purchase of buildingPayment of dividends	- Select -
Net cash provided by financing activitiesNet cash provided by operating activitiesNet cash used for operating activitiesNet cash used for investing activities		$- Select -
Investing Activities:
Add: Decrease in accounts payableAdd: Decrease in accounts receivableAdd: Depreciation expenseAdd: Increase in inventoriesLess: Decrease in accounts payableLess: Decrease in accounts receivableLess: Depreciation expenseLess: Increase in inventoriesNet incomePayment for purchase of building	$- Select -
Add: Decrease in accounts payableAdd: Increase in inventoriesCash, January 1Cash, December 31Less: Decrease in accounts payableLess: Increase in inventoriesNet incomePayment for purchase of equipmentPayment of dividendsReceipt from issuance of bonds	- Select -
Net cash provided by financing activitiesNet cash provided by operating activitiesNet cash used for investing activities		- Select -
Financing Activities:
Decrease in accounts payablePayment for purchase of buildingPayment for purchase of equipmentPayment of dividends	$- Select -
Decrease in accounts receivableIncrease in inventoriesPayment for purchase of buildingReceipt from issuance of bonds	- Select -
Net cash provided by financing activitiesNet cash provided by operating activitiesNet cash used for financing activitiesNet cash used for investing activities		- Select -
Net decrease in cashNet increase in cash		$- Select -
Cash, January 1Cash, December 31		- Select -
Cash, January 1Cash, December 31		$- Select -