Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment $ 222,000 Increase in inventory 25,000 Increase in prepaid rent 6,000 Payment of dividends 39,000 Depreciation expense 11,000 Increase in accounts receivable 48,000 Increase in accounts payable 23,000 Loss on sale of land 14,500 Net income 69,000 Repayment of notes payable 42,000 Cash received from the sale of land 5,000 Issuance of common stock 240,000 Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) CEO CONSULTANTS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash (19,500) Cash at the beginning of the period 96,000 Cash at the end of the period $76,500

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 34P

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Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.

Listed below in random order are line items to be included in the statement of cash flows.

Purchase of equipment	$ 222,000
Increase in inventory	25,000
Increase in prepaid rent	6,000
Payment of dividends	39,000
Depreciation expense	11,000
Increase in accounts receivable	48,000
Increase in accounts payable	23,000
Loss on sale of land	14,500
Net income	69,000
Repayment of notes payable	42,000
Cash received from the sale of land	5,000
Issuance of common stock	240,000

Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.)

CEO CONSULTANTS
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities

Adjustments to reconcile net income to net cash flows from operating activities:







Net cash flows from operating activities
Cash Flows from Investing Activities



Net cash flows from investing activities
Cash Flows from Financing Activities




Net cash flows from financing activities
Net increase (decrease) in cash		(19,500)
Cash at the beginning of the period		96,000
Cash at the end of the period		$76,500

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