Question

Please record the statement of cash flows using the indirect method

STATEMENT OF CASH FLOWS. Prepare the staiement of cash flows for Use the indirect method Corporation for the Y ear ended December 31, 2016 PURPLE CIRCLE CORPORATION SHEET Income Statement Year Ended December 31,2016 s 662,000 560,000 Sales Revenue Cost of Goods Sold Gross Proft Current Assets 5 22000 4000 18,000 8,000 21,000 18000 3,000 Accounts recevable 19,000 11000 56,000 Salaries and Wage Expense Depreciation Expense-Plant Assets Rent Expense Total Operating Expense Net Income before Income Tax Income tax expense Net Income 2.000 Long-lerm Assets Plant Assets 159.200 9200 600 Accumáaled depreciation Pliant Assets (27 200) (25,200) 12000 0.000 42,000 Total Assets S 24.000 Accounts Payable Accrued Liabilties Income Tax Payable s 20,000 $ 6,000 14,00 9,000 (2.000) 0 3,000 Other Data Cash paid for purchase of equipment (plant asset 60,000 Cash receipt from issuance of common stock Cash payment of dividends 7,000 of bonds payable to borow cash 31,000 27,000 Bonds Payable Total Liabiliies 84000 53000 31,000 114,000 68,000 46,000 Stockholders' Equity Common stock, no par 42,000 15,000 27,000 24 000 14000 0000 39,000 41000 194000 107 000 87.000 Retained eamings 38.000 Total Stockholders' Equity Total Liabiltes and Slockhoiders Equtiy

Answer 1

STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net income		24000
Adjustments to reconcile net income to net cash profived by operations:
Depreciation expense	2000
Decrease in accounts receivable	-8000
Increase in merchandise inventory	-3000
Increase in income tax payable	3000
Decrease in accrued liabilities	-2000
Increase in accounts payable	14000	6000
Net cash provided by operating activities		30000
Cash flows from investing activities:
Purchase of plant assets	-60000
Net cash used in investing activities		-60000
Cash flows from financing activities:
Dividends paid	-10000
Issue of bonds	31000
Issue of common stock	27000
Net cash used in financing activities		48000
Net increase (decrease) in cash		18000
Cash balance at beginning of year		4000
Cash balance at end of year		22000