Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, $57,300 b. Payment of dividends, $16,200 C. Ten-year, $30,900 bonds payable were issued at face value d. Depreciation expense, $19,600 e. Building acquired at a cost of $31,400 f. Accounts receivable decreased by $2,600 g. Accounts payable decreased by $4,400 h. Equipment acquired at a cost of $6,300 1. Inventories increased by $5,000 j. Beginning cash balance, $28,200 Required: Prepare Rocky Horror Picture's statement of cash flows using the indirect method. ROCKY HORROR PICTURE CO. Statement of Cash Flows For Year Ended December 31, Current Year Operating ACIVILES Net income 57,300 Adjustments for differences between net income and cash flows from operating activities: Depreciation expense 19,600 Decrease in accounts receivable 2,600 Increase in inventories 5,000 x Decrease in accounts payable Net cash provided by operating activities 4,400 X 70,100 Investing Activities: Payment for purchase of building Payment for purchase of equipment Net cash used for investing activities Financing Activities: Payment of dividends Receipt from issuance of bonds Net cash provided by financing activities Net increase in cash Cash, January 1 Cash, December 31