• The following items involve the cash flow activities of Rocky Horror Picture a. Net income, 41,000 bPayment of dividends , $16,000 Tenyear, $28,000 bonds payable were issued at face value . Depreciation expense , $11,000 eBuilding acquired at a cost of $40 Accounts receivable decreased by $2,000 Accounts payable decreased by $4,000 hEquipment acquired at a cost of 58000 Inventories Increased by $7,000 Beginning cash balance, 13,000