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Statement of Cash Flow: Indirect Method

Could you look this over and give me pointers? I would appreciate it. Thanks again!

Statement Of Cash Flow - Indirect Method

Net Income: 42,500
Adjustments:
Depreciation - Machinery 6375
Depreciation - Buildings 13,500
Increase in Accts. Receivables 10,500

Increase in Inventories 6,000
Increase in accounts payable 10,250

Gain on sale of investment 3,750
Loss on sale of machinery -800
Net cash flow from operating activities 92,075

Solution Preview

Indirect Method Cash Flow
Comparative Balance Sheet Accounts:
Debit Accounts
Cash 42,000 33,750
A/R 70,500 60,000
Merchandise Inventory 30,000 30,000
Investments (available for sale) 22,250 38,500
Machinery 30,000 18,750
Buildings 67,500 56,250
Land 7,500 ...

Solution Summary

This solution assists with the statement of cash flow.

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