Statement of Cash Flows

Please see the attached document. Thank you.

EXERCISE 13-3 Net Cash Provided by Operating Activities (Indirect Method) (LO3)

For the year just completed, Strident Corporation, an office equipment wholesaler, had net income of $84,000. Balances in the company's current asset and current liabilities accounts at the beginning and end of the year were as follows:

End of Year Beginning of Year
Current Assets:
Cash $60,000 $80,000
Accounts receivable $250,000 $190,000
Inventory $437,000 $360,000
Prepaid expenses $12,000 $14,000
Current liabilities:
Accounts payable $420,000 $390,000
Accrued liabilities $8,000 $12,000

The Deferred Income Taxes liability account on the balance sheet increased by $6,000 during the year, and depreciation charges were $50,000.

Required:
Using the indirect method, determine the net cash provided by operating activities for the year.

EXERCISE 13-8 Prepare a Statement of Cash Flows (indirect Method) (LO2, LO3)

Comparative financial statement data for the Holly Company follow:

December 31
2007 2006
Cash $4 $7
Accounts receivable 36 29
Inventory 75 61
Plant and equipment 210 180
Accumulated depreciation (40) (30)
Total assets $258 $247
Accounts payable $45 $39
Common stock 90 70
Retained earnings 150 138
Total liabilities and shareholders' equity $285 $247

For 2007, the company reported net income as follows:

Sales $500
Cost of goods sold 300
Gross margin 200
Selling and administrative expenses 180
Net income 20

Dividends of $8 were declared and paid during 2007.

Required:
Using the indirect method, prepare a statement of cash flows for 2007.

ANALYTICAL THINKING (LO2, LO3)

Listed below are the changes that have taken place in Luang Corporation's balance sheet accounts as a result of the past year's activities:

Debit Balance Accounts Net Increase (Decrease)
Cash $(30,000)
Accounts Receivable 20,000
Inventory (60,000)
Prepaid Expenses 10,000
Long-Term Investments 50,000
Plant and Equipment 120,000
Net Increase $110,000

Credit Balance Accounts Net Increase (Decrease)
Accumulated Depreciation $40,000
Accounts Payable 30,000
Accrued Liabilities 10,000
Taxes Payable 10,000
Bonds Payable (40,000)
Deferred Income Taxes (5,000)
Common Stock 20,000
Retained Earnings 45,000
Net Increase $110,000

The following additional information is available about last year's activities:

a. The company sold equipment during the year for $40,000. The equipment originally cost the company $120,000, and it had $70,000 in accumulated depreciation at the time of sale.
b. Net income for the years was $_____?_____.
c. The balance in the Cash account at the beginning of the year was $100,000; the balance at the end of the year was $_____?_____.
d. The company declared and paid $35,000 in cash dividends during the year.
e. Long-term investments that had cost $60,000 were sold during the year for $80,000.
f. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts for the past year are given below:

Ending Beginning
Plant and Equipment $620,000 $500,000
Accumulated Depreciation $240,000 $200,000

g. If data are not given explaining the account, make the most reasonable assumption as to the cause of the change.

Required:
Using the indirect method, prepare a statement of cash flows for the past year.