Textbook Problem

Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.:

1. a. Net income, $41,000
2. b. Payment of dividends, $16,000
3. c. Ten year, $28,000 bonds payable were issued at face value
4. d. Depreciation expense, $11,000
5. e. Building acquired at a con of $40,000
6. f. Accounts receivable decreased by $2,000
7. g. Accounts payable decreased by $4,000
8. h. Equipment acquired at a cost of $8,000
9. i. Inventories increased by $7,000
10. j. Beginning cash balance, $13,000

Required:

Prepare Rocky Horror Picture’s statement of cash flows using the indirect method.