Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.
| Listed below in random order are line items to be included in the statement of cash flows. |
|
|
| Purchase of equipment |
$ 229,000 |
| Increase in inventory |
35,000 |
| Increase in prepaid rent |
7,500 |
| Payment of dividends |
31,000 |
| Depreciation expense |
13,000 |
| Increase in accounts receivable |
47,000 |
| Increase in accounts payable |
15,000 |
| Loss on sale of land |
12,000 |
| Net income |
69,000 |
| Repayment of notes payable |
49,000 |
| Cash received from the sale of land |
7,500 |
| Issuance of common stock |
241,000 |
|
Prepare the statement of cash flows for CEO Consultants using the indirect method?