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 Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income $ 221,000 28,000 10,000 37,000 14,000 50,000 17,000 10,000 69,000 48,000 3,500 249,000 Repayment of notes payable Cash received from the sale of land Issuance of common stock 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.)

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 Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income $ 221,000 28,000 10,000 37,000 14,000 50,000 17,000 10,000 69,000 48,000 3,500 249,000 Repayment of notes payable Cash received from the sale of land Issuance of common stock 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.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 27BE

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