The 2010 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 2010 statement of cash flows for the AndellCompany.

Transcribed Image Text:

Cash Flows Statement December 31, 2010 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 Decrease in accounts receivable 2,100 4,800 Depreciation expense Total other inflows of cash 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) Total outflows of cash Net Increase in Cash Cash, December 31, 2010 Cash, January 1, 2010 11,700) 3,500 11,700 S 8,200