Question

The following information is related to Alpha Company's fiscal year 2017.

Net Income $300,000

Depreciation Expense 50,000

Gain on Sale of Plant Assets 5,000

Accounts Payable decrease by 4,000

Purchase of land 250,000

Sale of Equipment 105,000

Additional Information: Beginning Cash Balance: $50,000

Ending Cash Balance: $216,000

Equipment was sold for 105,000 in cash.

Land was paid for in cash.

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000

Use this information to prepare the Statement of Cash Flows for Alpha Company using the indirect method

Answer 1

Statement of cash flows: Particulars Amount Operating Activities:- - Net Income $300,000 (t) Depreciation +(500001 (-) Gain (5000) (-) Accounts payable (1000) → Cash flow from operating activities $841000 Investing activities: (-> Perchase of land (250000) t Sale of equipment .105000__ Cash flow from investing activities (145009). - financing activities: formon stock 195000 aj Dinidends paid (30000). Cash flow from financing activities Net cash flow from all activities $791000 E (30000) $166000 50000 - (+) Beginning cash balance → Ending cash balance $216000