Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $53,600 Payment for purchase of building, $99,000 Increase in accounts receivable, $7,000 Proceeds from issuance of common stock, $37,500 Increase in accounts payable, $4,800 Proceeds from sale of land, $7,000 Depreciation expense, $17,000 Payment of dividends, $34,000 Gain on sale of land, $3,000 Decrease in inventory, $3,900 Payment for purchase of long-term investments, $8,000 Amortization of discount on bonds payable, $1,100 Proceeds from issuance of note, $17,000 Increase in deferred taxes payable, $4,300 Equipment acquired by capital lease, $16,100 Decrease in salaries payable, $2,400 Beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income,...
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Statement of Cash Flows

The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows:

  1. Net income, $53,600
  2. Payment for purchase of building, $99,000
  3. Increase in accounts receivable, $7,000
  4. Proceeds from issuance of common stock, $37,500
  5. Increase in accounts payable, $4,800
  6. Proceeds from sale of land, $7,000
  7. Depreciation expense, $17,000
  8. Payment of dividends, $34,000
  9. Gain on sale of land, $3,000
  10. Decrease in inventory, $3,900
  11. Payment for purchase of long-term investments, $8,000
  12. Amortization of discount on bonds payable, $1,100
  13. Proceeds from issuance of note, $17,000
  14. Increase in deferred taxes payable, $4,300
  15. Equipment acquired by capital lease, $16,100
  16. Decrease in salaries payable, $2,400
  17. Beginning cash balance, $20,300

Required

1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

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