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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