Reference no: EM131750543

Question - Creating a statement of Cash flow for these transactions using the indirect method.

Net Income                                    $300,000

Depreciation Expense                      50,000

Gain on Sale of Plant Assets             5,000

Accounts Payable decrease by          4,000

Purchase of land                              250,000

Sale of Equipment                            105,000

Additional Information:

Beginning Cash Balance: $50,000 Ending Cash Balance: $216,000

Equipment was sold for 105,000 in cash.

Land was paid for in cash.

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

Dividends paid were $30,000.