Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing
Question:
Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).
ATM SOFTWARE DEVELOPERS
Statement of Cash Flows
For the year ended December 31, 2012
Cash Flows from Operating Activities
Net income ......................................................................................................... $
Adjustments for noncash effects:
Net cash flows from operating activities..........................................................................._______
Cash Flows from Investing Activities
Net cash flows from investing activities............................................................................._______
Cash Flows from Financing Activities
Net cash flows from financing activities............................................................................._______
Net increase (decrease) in cash .........................................................................................$2,565
Cash at the beginning of the period .......................................................................................7,410
Cash at the end of the period ............................................................................................$9,975
Listed below in random order are line items to be included in the statement of cash flows.
Cash received from the sale of land ...................................................................................$ 8,550
Issuance of common stock .............................................................................................12,825
Depreciation expense ....................................................................................................5,415
Increase in accounts receivable ..........................................................................................3,990
Decrease in accounts payable ...........................................................................................1,710
Issuance of long-term notes payable ...................................................................................16,245
Purchase of equipment ..................................................................................................39,615
Decrease in inventory .....................................................................................................1,425
Decrease in prepaid rent ...................................................................................................855
Payment of dividends ....................................................................................................6,270
Net income ..............................................................................................................11,400
Purchase of treasury stock ..............................................................................................2,565
Required:
Prepare the statement of cash flows for ATM Software Developers using the indirect method.
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Step by Step Answer:
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann