Question

Prepare the statement of cash flows using the indirect method
CANYON CANOE COMPANY Comparative Balance Sheet December 31, 2018 and 2019 2019 2018 Assets Current Assets: Cash Short-term Investments, net Accounts Receivable, net S 523,693 12,125 23,840 2,422 355 60 7,600 Office Supplies Prepaid Rent 165 2,000 Property, Plant, and Equipment: 155,000 610,000 12,000 150,000 (35,180) 85,000 35,000 12,000 Office Furniture and Equipment Accumulated Depreciation-PP&E (850) Total Assets 1,442,190 153,040 Liabilities Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue S 5,195 S3,050 295 325 1,250 745 700 4,250 15,000 350 500 50 350 Long-term Liabilities: Notes Payable Mortgage Payable Bonds Payable Discount on Bonds Payable 7,200 405,000 210,000 (1,270) 647,670 7,200 Total Liabilities 12,520 Stockholders' Equity Paid-In Capital: Preferred Stock Paid-In Capital in Excess of Par-Preferred Common Stock Paid-in Capital in Excess of Par--Common 60,000 10,000 186,000 36,000 150,000 388,520 794,520 140,520 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 4,520 1,442,190 153,040

Answer 1

	Statement of Cash Flows - Indirect Approach
		Amount in $	Amount in $
	Net income
	Cash flows from operating activities		$          4,17,000
	Adjustments for reconcile the net income to:
	Depreciation	$             34,330
	Amortization of Bonds	$                   254
	Decrease in office supplies	$                   105
	Decrease in prepaid rent	$              -2,000
	(Increase) / Decrease in Account receivables	$                5,178
	Increase in mercahdise inventory	$                  -355
	Utilities Payable increases	$                   450
	Telephone epx pyable increases	$                   375
	Wages Payable increases	$                3,000
	Interest Payable increases	$                   300
	Uearned revenue	$                   150
	Accounts payable Increases	$                2,145
			$             43,932
	Net cash from operating activities		$          4,60,932
	Cash flows from investing activities
	Sale of Investment
	Purhcase of Furniture	$        -1,50,000
	Short Term investment	$            -23,840
	Issue of notes Payable	$             15,000
	Purchase of Building	$        -6,07,000
	Net cash used in investing activities		$        -7,65,840
	Cash flows from Financing activities
	Bonds issue	$          2,08,476
	Dividend Paid in cash	$            -15,000
	Dividend paid in Stock	$             18,000
	Moprtgage Payable	$          4,05,000
	Issue of Common Stock	$          2,00,000
	Net cash used in financing activities		$          8,16,476
	Net increase in cash and cash equivalents		$          5,11,568
	Add :Cash and cash equivalents at beginning of period		$             12,125
	Cash and cash equivalents at end of period		$          5,23,693