Menu QUESTION 25 Not complete Points out of 1.00 P Rag question Statement of Cas
ID: 2563450 • Letter: M
Question
Menu QUESTION 25 Not complete Points out of 1.00 P Rag question Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement ot flows using the indirect method: Accounts payoble decrease Accounts receivable increase Wages payable decrease Amortization expense Cash balance, January Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par 136,500 Cash received from issuance of common stock 81,900 Cash received from sale of equipment Depreciation expense Gain on sale of equipment Inventory increase Net income Prepaid expenses increase cash 9,100 12,740 5,460 29,120 54,600 12,740 10,920 182,000 21,840 70,980 25,480 23,660 174,720 14,560 Remember to use negative signs with answers when appropriate. NEWCASTLE CORPORATION Statement of Cash Flows For Year Ended December 31Explanation / Answer
NEW CASTLE CORPORATION
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31
Prepaid Expenses Increase (cash outlow for expenses)
-$65520
Purchase of land
-182000
-160160
-136500
Particulars Amount Amount CASH FLOW FROM OPERATING ACTIVITIES Net Income $174720 Non cash adjustment items Add : Depreciation $70980 Less : Gain on sale of fixed assets $25480 Add : Amortization $29120 $74620 Effect of Changes in working capital Increase in accounts receivable (cash outlow to customers) - $12740 Increase in inventory (Cash outflow to purchase inventory) - $23660Prepaid Expenses Increase (cash outlow for expenses)
-$14560 Decrease in accounts payable (cash outflow to settle liabilities) -$9100 Decrease in wages payable (Cash outflow to settle liabilities) -$5460-$65520
CASH FLOW FROM OPERATING ACTIVITIES (A) $183820 CASH FLOW FROM INVESTING ACTIVITIES Sale of equipment $21840Purchase of land
-182000
CASH USED BY INVESTING ACTIVITIES (B)-160160
CASH FLOW FROM FINANCING ACTIVITIES Issuance of common stock $81900 Retirements of bonds payable-136500
Payments of dividend -$10920 CASH USED BY FINANCING ACTIVITIES (C) - $65520 NET DECREASE IN CASH (A+B+C) - $41860 CASH AT THE BEGINNING OF YEAR 1 JANUARY $54600 CASH AT THE END OF YEAR 31 DECEMBER $12740