Problem 11-2A (Algo) Classify items and prepare the statement of cash flows (LO11-1, 11-3, 11-4, 11-5)

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, 2024
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash flows from operating activities:
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	$2,085
Cash at the beginning of the period	7,870
Cash at the end of the period	$9,955

Listed below in random order are line items to be included in the statement of cash flows.

Cash received from the sale of land (no gain or loss)	$ 8,510
Issuance of common stock	12,725
Depreciation expense	5,395
Increase in accounts receivable	3,950
Decrease in accounts payable	1,690
Issuance of long-term notes payable	16,145
Purchase of equipment	39,515
Decrease in inventory	1,405
Decrease in prepaid rent	835
Payment of dividends	6,230
Net income	11,000
Purchase of treasury stock	2,545

Required:

Prepare the statement of cash flows for ATM Software Developers using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000,000 should be entered as 10,000).)

Prev

Question 7 of 8 Total7 of 8

Visit question mapNext