Question

REYNOLDS FOOD COMPANY INCOME STATEMENT 12/31/09 REVENUES S 890,000 COST OF GOODS SOLD 465,000 OPERATING EXPENSES 188,000 DEPRECIATION EXPENSE 33,000 12.000 INTEREST EXPENSE LOSS ON SALE OF EQUIPMENT .000 TAXABLE INCOME 190,000 INCOME TAXES NET INCOME 65,000 S 125,000 1- Equipment costing $41,000 and a book value of $36,000 was sold for $34,000 in cash. 2- Notes payable of $10,000 was paid in cash and $30,000 was converted to common stock

Attached is the income statement and balance sheet and other info.

QUESTION:

I need to Prepare a Statement of cash Flows using the INDIRECT METHOD.?

Answer 1

Reynolds Foods Compan
Cash Flow Statement
Cash Flows From Operating Activities
Net Income		$125,000.00
Adjustment To Reconcile Net Income To:
Depreciation Expense	$33,000.00
LossOn Sale Of Equipment	$2,000.00
Increase In Accounts Receivable	-$42,000.00
Increase In Inventory	-$54,000.00
Decrease In Prepaid Expense	$2,000.00
Decrease In Accounts Payable	-$17,000.00
Increase In Accrued Liabilities	$10,000.00
		-$66,000.00
Net Cash Provided By Operating Activities		$59,000.00
Cash Flows From Investing Activities
Sale Of Equipment	$34,000.00
Purchase Of Equipment (193000-68000+41000)	-$166,000.00
Net Cash Used By Investing Activities		-$132,000.00
Cash Flows From Financing Activities
Issue Of Common Stock (220000-30000-60000)	$130,000.00
Payment Of Note Payable	-$40,000.00
Net Cash Used By Financing Activities		$90,000.00
Net Increase in Cash		$17,000.00
Beginning Cash Balance		$37,000.00
Ending Cash Balance		$54,000.00