The 2007 statement of cash flows for the Andell Company, 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 2007 statement of cash flows for the AndellCompany.

Transcribed Image Text:

Cash Flows Statement December 31, 2007 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 Payment for investment in bonds Payment of long-term note Less: Net cash inflows from operations Other Inflows 2,100 4,800 Decrease in accounts receivable Depreciation expense Total other inflows of cash 6,900 Total inflows of cash Outflows of Cash Payment for purchase of land Decrease in accounts payable Payment of dividends Gain on sale of equipment $15,200 $(5,200) (2,800) (3,000) (700) Total outflows of cash Net Increase in Cash Cash, December 31, 2007 Cash, January 1, 2007 (11,700) S 3,500 11.700 S 8,200