Question

The Brady Corporation reported the following income statement for 2018 and comparative balance sheet for 2018 and 2017, along with transaction data for 2018: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) B (Click the icon to view the additional data.) Prepare Brady Corporation's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities by the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty: do not select a label or enter a zero.) Brady Corporation Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided (Used for) by Operating Activities: Net Cash Provided by (Used for) Operating Activities
Hey guys sorry, this is actually and accounting problem not an economics one. I clicked the wrong button when I was posting this.

Answer 1

Solution:

Brady Corporation
Statement of cash flows
For the year ended December 31, 2018
Cash flow from operating activities:
Net Income		$92,000
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation	$13,000
Loss on disposal of plant assets	$7,000
Decrease in Accounts Receivables	$3,000
Increase in Inventory	-$11,000
Increase In Accounts Payable	$12,000
Decrease in Accrued Liabilities	-$4,000
		$20,000
Net Cash provided by Operating Activities		$1,12,000
Cash Flow from Investing Activities:
Cash Received from sale of Equipment	$55,000
Cash paid Purchase of Equipment	-$1,70,000
Net Cash Flow From Investing Activities (B)		-$1,15,000
Cash Flow from Financing Activities:
Cash Payment of Dividends	-$16,000
Issuance of Bond payable to borrow Cash	$51,000
Cash receipt from issuance of Common Stock	$16,000
Cash Payment for purchase of Treasury Stock	-$8,000
Net Cash Flow From Financing Activities (C)		$43,000
Total Change in Cash from all activities (A+B+C)		$40,000
Cash at the beginning of the year		$10,000
Cash at the end of year		$50,000