Statement of Cash Flows

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

a$.$ Net income, $$52,500$

b$.$ Payment of dividends, $$15,300$

c$.$ Ten$-$year, $$34,300$ bonds payable were issued at face value

d$.$ Depreciation expense, $$19,100$

e$.$ Building acquired at a cost of $$36,600$

f$.$ Accounts receivable decreased by $$3,200$

g$.$ Accounts payable decreased by $$4,200$

h$.$ Equipment acquired at a cost of $$6,200$

i$.$ Inventories increased by $$5,600$

j$.$ Beginning cash balance, $$19,600$

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 Activities:

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

Jperating Activities:

Netincome $v$

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

Deprecation expense

Decrease in accounts receivable $v$

Increase in inventories

Decrease in accounts payable $v$

Net cash provided by operating activities $$

Investing Activities:

Payment for purchase of building $v$

payment for purchase of equipment $v$

Net cash used for investing activities $$

Financing Activities:

Payment of dividends $v$

Receipt from issuance of bonds $v$

Net cash provided by finanding activities $v$

vet increase in cash $$

Cash, January $1=v$

ash, December $31v$