Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, $58,700 b. Payment of dividends, $15,500 c. Ten-year, $33,600 bonds payable were issued at face value d. Depreciation expense, $22,700 e. Building acquired at a cost of $38,100 f. Accounts receivable decreased by $1,800 g. Accounts payable decreased by $3,900 h. Equipment acquired at a cost of $6,100 i. Inventories increased by $6,100 j. Beginning cash balance, $26,300