a)Compute the net cash flow from operating activities using th indirect method.

b) Compute the net cash flow from investing activities.

c) Compute the net cash flow from financing activities.

In Class Practice Problem: Statement of Cash Flows Brooke Sportswear Balance Sheets December 31, 2011 and 2010 2011 Brooke Sportswear Income Statement For the Year Ended December 31, 2011 2010 ASSETS $ 472,000 (232,000) $ 240,000 Current assets: Cash Accounts receivable Propoid insurance Inventory Total current assets Long term investments Property, plant, and equipment: Land Equipment Accumulated depreciation Total assets $ 15,000 53,000 1,000 63,000 $ 132,000 53,000 325,000 243,000 (178,000) $575,000 $ 13,000 46,000 2,000 51.000 $ 112,000 41,000 (142,000) (15,000) (40,000) $ 43,000 Sales revenue Less: Cost of goods sold Gross margin Less operating expenses Woges expense Insurance expense Depreciation expense Income from operations Other income and expenses: Loss on disposal of property, plant, and equipment Goin on sale of investments Interest expense Income before foxes Less: Income taxes expense Not income 325,000 210,000 (150.000) $ 538,000 16,000) 15,000 15.000) $ 47,000 (8,000) $ 39,000 LIABILITIES AND EQUITY Current liabilities: Accounts payable Wages payable Interest payoblo Income taxes payable Total current liabilities Long-term liabilities: Notes payable Total liabilities Equity Common stock Retained earnings Totol equity Total liabilities and equity $ 13,000 3,500 1,500 3,000 $ 21,000 109,000 $130,000 $ 17,000 2,000 1,000 6,000 $ 26,000 115.000 $141,000 Additional Information: 1. Equipment with a cost of $20,000 and occumulated depreciation of $12,000 was sold for $2,000 cash. Equipment was purchased for $53,000 cash. 2. Long-term investments with a cost of $16,000 were sold for $31.000 cash. Additional investments were purchased for $28,000 cash. 3. Notes payable in the amount of $35,000 were repaid, and new notes payable in the amount of $29,000 were issued for cash. 4. Common stock was issued for $14,000 cash. 5. Cash dividends of $5,000 were paid (obloined from the retained earnings statement). $165,000 280,000 $445,000 $575,000 $151,000 246,000 $397,000 $538,000