Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, $54,800 b. Payment of dividends, $15,000 c. Ten-year, $37,600 bonds payable were issued at face value d. Depreciation expense, $14,800 e. Building acquired at a cost of $40,600 f. Accounts receivable decreased by $3,300 g. Accounts payable decreased by $4,000 h. Equipment acquired at a cost of $5,900 i. Inventories increased by $6,800 j. Beginning cash balance, $20,800 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 Activities: Cash, lanuary 1 Adjustments for differences between net income and cash flows from operating activities: Depreciation expense Decrease in accounts receivable Increase in inventories Decrease in accounts payable Net cash provided by financing activities Investing Activities: Add: Decrease in accounts payable Add: Decrease in accounts payable Net cash provided by financing activities Financing Activities: Decrease in accounts payable Decrease in accounts receivable Net cash provided by financinq activities Net decrease in cash Cash, lanuary 1 Cash, lanuary 1