Question

The income statement and additional data of Barnaby Travel Products, Inc., follow: E: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Barnaby's statement of cash flows for the year ended December 31, 2018, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation. Requirement 1. Prepare Barnaby's statement of cash flows for the year ended December 31, 2018, using the indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Barnaby Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Cash flow satetment
net income			39000
adjustments
add: depreciation			28000
add: decrease in accounts receivable			16000
add: decrease in inventory			42000
less: increase in prepaid expenses			-200
add: increase in accounts payable			15000
add increase in accrued liabilities			55000
cash flow from operating activities (1)			194800
cash flow from investing activities
acquisition of plant			-104000
proceeds from sale of land			39000
net cash flow from investing activities (2)			-65000
cash flow from financing activities
payment of dividend			-8000
payment of long term notes payable			-16000
proceeds from issue of common stock			31000
net cash flow from financing activities (3)			7000
net change in cash (1)+(2)+(3)			136800
add: cash balance at the beginning			33200
cash balance at the end			170000

Please give a thumbs up if it is helpful & let me know if any doubt