Statement of Cash Flows $($Indirect Method$)$

Use the following information regarding the Surpa Corporation to $($a$)$ prepare a statement of cash flows using the indirect method and $($b$)$ compute Surpa$$s operating$$cash$$flow$$to$$current$$liabilities ratio.

Accounts payable increase $$13,000$

Accounts receivable increase $4,000$

Accrued liabilities decrease $6,000$

Amortization expense $7,000$

Cash balance, January $121,000$

Cash balance, December $3117,000$

Cash paid as dividends $31,000$

Cash paid to purchase land $90,000$

Cash paid to retire bonds payable at par $60,000$

Cash received from issuance of common stock $40,000$

Cash received from sale of equipment $17,000$

Depreciation expense $29,000$

Gain on sale of equipment $7,000$

Inventory decrease $13,000$

Net income $78,000$

Prepaid expenses increase $3,000$

Average current liabilities $140,000$

a$.$ Use negative signs with cash outflow answers.

SUPRA CORPORATION

Statement of Cash Flows

For Year Ended December $31$

Cash Flow from Operating Activities

Net Income Answer

$78000$

Add $($deduct$)$ items to convert net income to cash basis

Depreciation Answer

$29000$

Amortization Answer

$7000$

Gain on Sale of Equipment Answer

$-7000$

Accounts Receivable Increase Answer

$-4000$

Inventory Decrease Answer

$13000$

Prepaid Expenses Increase Answer

$-3000$

Accounts Payable Increase Answer

$13000$

Accrued Liabilities Decrease Answer

$-6000$

Cash Flow Provided by Operating Activities Answer

Cash Flow from Investing Activities

Sale of Equipment Answer

$17000$

Purchase of Land Answer

$-90000$

Cash Used by Investing Activities Answer

$-73000$

Cash Flow from Financing Activities

Issuance of Common Stock Answer

$40000$

Retirement of Bonds Payable Answer

Payment of Dividends Answer

$-31000$

Cash Used by Financing Activities Answer

$-51000$

Net Decrease in Cash Answer

Cash at Beginning of Year Answer

$21000$

Cash at End of Year Answer

b$.$ Operating$-$cash$-$flow$-$to$-$current$-$liabilities ratio $($Round answer to two decimal places.$)$

Answer