Question

Homework: HW 3 - CH 6 core: 0 of 1 pt P6-16 (similar to) 5 of 5 (4 complete) Waldorf, Incorporated provided the following balance sheet, income statement, and cash flow information for the current year. Click the icon to view the balance sheet.) (Click the icon to view the income statement.) (Click the icon to view the cash flow information.) Requirement Prepare the statement of cash flows under the indirect method for Waldorf, Incorporated. Accrued expenses relate to Selling, General and Administrative Expenses For the Year Ended December 31 Operating Activities: Cash Collected from Customers 4635 Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: Changes in Current Assets and Liabilities Choose from any list or enter any number in the input fields and then click Check Answer 3 parts Clear All remaining

Answer 1

Cash flow statement-Indirect method
cash flow from operating activies
net income		8600
depreciation expense		2300
changes in working capital
Increase in A/R		-200
Decrease in inventory		1600
decrease in prepaid expenses		600
Increase in A/P		3385
Increase in accrued expense		5050
Increase in income tax payable		1800
net cash flow from operating activies			23135
cash flow from investing activities
purchase of plant and property		-19800
sale of investment securities		12700
net cash flow from investing activities			-7100
cash flow from financing activities
issue of common stock		5200
payment of dividend		-4700
payment to notes payable		-11900
net cash flow from operating activities			-11400
net cash flow during the year				4635
beginning cash balance				3300
Year end cash balance				7935