Andell Company’s 2019 statement of cash flows, as developed by its bookkeeper, is shown here:

You determine that the amounts of the items listed on the statement are correct, but in certain circumstances, incorrectly classified.

Required:
Prepare a corrected 2019 statement of cash flows for Andell.

Transcribed Image Text:

Cash Flows Statement December 31, 2019 Inflows of Cash Operating Activities $ 10,600 4,400 4,300 (6,000) (5,000) $ 8,300 Net income Add: Proceeds from sale of equipment Proceeds from issuance of stock Less: Payment for investment in bonds Payment of long-term note Net cash inflows from operations Cash Flows Statement December 31, 2019 Other Inflows Decrease in accounts receivable Depreciation expense Total other inflows of cash $ 2,100 4,800 6,900 $ 15,200 Total inflows of cash Outflows of Cash Payment for purchase of land Decrease in accounts payable Payment of dividends Gain on sale of equipment $(5,200) (2,800) (3,000) (700) (11,700) $ 3,500 11,700 $ 8,200 Total outflows of cash Net increase in cash Cash, December 31, 2019 Cash, January 1, 2019