The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method.
Principal payments on long-term debt $50,000
Increase in accounts payable 24,300
Acquisition of equipment by issuing long-term note payable 70,000
Amortization expense 18,700
Proceeds from sale of investments, not including a $5,100 gain 49,100
Increase in accounts receivable 8,700
Cash payments to purchase plant assets 62,000
Decrease in accrued liabilities 60,300
Payment of cash dividends 64,500
Proceeds from sale of plant assets, not including a $7,400 loss 22,600
Net income 174,100
Depreciation expense 35,500
Proceeds from issuance of common stock 300,000
Increase in inventory 71,400
Bonds payable converted into common stock 130,000
Decrease in prepaid expenses 12,800
Cash balance: December 31, 2006 52,500
Cash balance: December 31, 2007 373,000