Question

Current Attempt in Progress Shown below are comparative statements of financial position for Riverbed Corporation. RIVERBED CORPORATION Statement of Financial Position December 31 Assets 2018 Cash $67,790 Accounts receivable 85,910 Inventory 170,930 Land 81,760 Equipment 254,300 Accumulated depreciation - equipment (65,930) $594,760 Liabilities and Shareholders' Equity Accounts payable $38,120 Bonds payable 157,000 Common shares 219,920 Retained earnings 179,720 $594,760 2017 $20,520 76,400 193.800 105,260 192,100 (33,630) $554,450 $45,520 202.000 177,030 129,900 $554,450

Additional information:

1.		Net income for 2018 was $98,670. There were no gains or losses reported on the income statement.
2.		Cash dividends of $48,850 were declared and paid.
3.		Bonds payable amounting to $45,000 were redeemed for cash $45,000. The bonds were originally issued at face value (no premium or discount).
4.		Common shares were issued for $42,890 cash.
5.		No land was purchased during 2018.
6.		No equipment was disposed of during 2018.

Prepare a statement of cash flows for 2018 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Answer is given below

Difference in opening and closing balance of Balance Sheet is taken below for entering inputs

$98,670 $38,260 $136,930 RIVERBED CORPORATION Statement of Cash flows For the year ended December 31, 2018 Cash flows from Operating Activities Net Income Add: Adjustments to reconcile net income to Depreciation $32,300 Increase in Accounts Receivable ($9,510) Decrease in Inventory $22,870 Decrease in Accounts payable ($7,400) Net Cash provided by Operating Activities Cash flows from Investing Activities Sale of Land $23,500 Purchase of Equipment ($62,200) Net Cash used by Investing Activities Cash flows from Financing Activities Repayment of Bonds ($45,000) Issue of common stock $42,890 Dividend paid ($48,850) Net Cash used by Financing Activities Net Cash inflow/(outflow) Opening balance of cash Closing balance of cash ($38,700) ($50,960) $47,270 $20,520 $67,790