Statement of Cash Flows

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

Net income, $$41,000$

Payment of dividends, $$16,000$

Ten$-$year, $$28,000$ bonds payable were issued at face value

Depreciation expense, $$11,000$

Building acquired at a cost of $$40,000$

Accounts receivable decreased by $$2,000$

Accounts payable decreased by $$4,000$

Equipment acquired at a cost of $$8,000$

Inventories increased by $$7,000$

Beginning cash balance, $$13,000$

Required:

Prepare Rocky Horror Picture$$s statement of cash flows using the indirect method. Use a minus sign for any negative amounts.

ROCKY HORROR PICTURE CO$.$

Statement of Cash Flows

For Year Ended December $31,$ Current Year

Operating Activities:

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Adjustments for differences between income flows and cash flows from operating activities:

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Investing Activities:

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Financing Activities:

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