Question

P16B-45B Using a spreadsheet to prepare the statement of cash flows- indirect method The 2018 comparative balance sheet and income statement of Attleboro Group, follow. Attleboro disposed of a plant asset at book value in 2018. ATTLEBORO GROUP, INC. Income Statement Year Ended December 31, 2018 $441,000 205,400 235,600 $ 76,300 15,300 49,600 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Revenue Interest Expense Total Other Income and (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 141,200 94,400 11,500 (24,400) (12,900) 81,500 16,200 $ 65,300

Answer 1

STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net income		$          65,300
Adjustments to reconcile net income to net cash flows from operations:
Income statement items not affecting cash:
Depreciation expenses	$         15,300
Changes in current operating assets and liabilities:
Decrease in accounts receivable	$           1,700
Increase in merchandise inventory	$          -3,500
Decrease in accounts payable	$          -1,500
Increase in accrued liabilities	$           1,300	$          13,300
Net cash flow from operating activities		$          78,600
Cash flows from investing activities:
Purchase of land	$        -25,400
Purchase of plant assets (121250-112850+13600)	$        -22,000
Net cash flow from investing activities		$        -47,400
Cash flows from financing activities:
Repayment of notes payable	$        -13,000
Issue of common stock	$           8,500
Payment of dividends (19100+65300-56200)	$        -28,200
Net cash flows from financing activities		$        -32,700
Net increase in cash		$          -1,500
Cash balance at prior year end		$          15,500
Cash balance at current year end		$          14,000