SolutionQuiz3Tuesday - Proceeds from sale of land 320,000...

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Solution: Risk Corporation Cash Flow Statement—Indirect Approach For the Year Ended December 31, 2008 Cash flows from operating activities: Net income $ 165,200 Add: Amortization-capital assets 200,000 Amortization-patents 27,000 Loss on sale of equipment 100,000 Decrease in accounts receivable 170,000 Increase in accounts payable 124,000 Less: Increase in temporary investments (140,000) Increase in inventory (246,000) Decrease in income taxes payable (15,000) Decrease in other accrued payables (80,000 ) Cash provided by operating activities $305,000 Cash flows from investing activities:
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Unformatted text preview: Proceeds from sale of land 320,000 Purchase of equipment (500,000 ) Cash used by investing activities (180,000) Cash flows from financing activities: Proceeds from issue of bonds (given) 600,000 Repurchase of bonds (by deduction) (100,000) Repayment of note payable (given) (480,000) Proceeds from a new note payable (by deduction) 100,000 Payment of cash dividend (40,000 ) Cash provided by financing activities 80,000 Increase in cash 205,000 Cash balance, January 1, 2008 200,000 Cash balance, December 31, 2008 $405,200...
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