Question

Statement of Cash Flows (Indirect Method) The Sky Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: SKY COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $800,000 Dividend Income 19,000 819,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 30,000 Loss on Sale of Equipment 5,000 Gain on Sale of Investments (10,000) 654,000 Net Income $165,000
Please help with the wrong ones, thank you!

Answer 1

$ 165,000 Statement of Cash flows For Year Ended December 31, 2019 Cash flows from Operating Activities: Net Income Add (deduct) items to convert net income to cash basis Depreciation expenses Patent Amortization Loss on sale of equipment Gain on sale of Investment Accounts Receivables Increase Inventory Increase Prepaid Expenses Increase Accounts Pyable Interest Payable Increase Income Tax Payable Decrease Cash flow provided by operating activities $ $ $ S S S S 39,000 7.000 5,000 (10,000) (10,000) (23,000) (4,000) 3,000 1,000 (4.000) 169,000 S S

$ 60,000 $ 90,000) $ 95,000) $ 14,000 $ (111,000) Cash Flows from Investing Activities Sale of Investments Purchase of land Improvements to Building Sale of equipment Cash used by Investing activities Cash Flows from Financing Activities Issunace of Bonds payable Issuance of Common stock Payment of Dividends Cash used by Financing Activities Net Increase in Cash Cash at the beginning of Year Cash at the end of Year $ $ S S S S S 5,000 24,000 (53.000) (24,000) 34.000 29.000 63.000