Question

A (Click the icon to view the additional information.) The 2018 income statement and comparative balance sheet of All Wired, Inc. follow: (Click the icon to view the income statement.) E: (Click the icon to view the comparative balance sheet.) Read the requirements. Requirement 1. Prepare the 2018 statement of cash flows, formatting 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.) Complete the statement one section at a time, beginning with the cash flows from operating activities. All Wired, Inc. 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 by (Used for) Operating Activities:

Answer 1

STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net income		$          96,100
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation	$         14,300
Increase in accounts receivable	$              -800
Decrease in merchandise inventory	$         12,600
Increase in accounts payable	$            5,300
Decrease in accrued liabilities	$          -2,100	$          29,300
Net cash flow from operating activities		$      1,25,400
Cash flows from investing activities:
Purchase of plant (127410-115480+11570)	$        -23,500
Net cash used by investing activities		$        -23,500
Cash flows from financing activities:
Sale of stock (88500-64100)	$         24,400
Notes payable redeemed (101000-72000+25900)	$        -54,900
Dividends paid (11600+96100-47900)	$        -59,800
Net cash used by financing activitites		$        -90,300
Increase in cash during the period		$          11,600
Cash at the beginning of the period		$          15,200
Cash at the end of the period		$          26,800