Question

I need help on how to do this using indirect method for the information provied?

Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flow thousands (0005) ATM SOFTWARE DEVELOPERS Statement of Cash Flows: For the year ended December 31, 2018 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Nel cash flows from financing activities Not increase (decrease) in cash Cash at the beginning of the period $ 2.925 7,065 Cash at the end of the period $ 9,990

Answer 1

ATM SOFTWARE DEVELOPERS Statements of Cash Flows - Indirect Method Particulars Amount Amount Operating activities: Net Income $ 11,700 Adjustments to reconcile net income to cash flow from operating activities: Depreciation expense $ 5,430 Increase in Accounts receivable $ (4,020) Decrease in Inventories $ 1,440 Decrease in Prepaid rent $ 870 Decrease in Accounts Payable $ (1,725) $ 1,995 Net Cash flow from Operating activities $ 13,695 Cash flow from investing activities: Cash received from sale of land Cash paid for purchase of equipment Net Cash used in Investing activities $ $ 8,580 (39,690) $ (31,110) Cash flow from financing activities: Issuance of common stock Issuance of Long-term Notes Payable Purchae of treasury stock Cash paid for dividends Net Cash used in financing activities $ $ $ $ 12,900 16,320 (2,580) (6,300) $ 20,340 Net increase (decrese) in cash Cash at the beginning of the period Cash at the end of the period $ $ 2,925 7,065 9,990