Reference no: EM132524032
Statement of Cash Flows Problem
Consider the following information in preparing a statement of cash flows for Huntsman Corp:
Beginning Cash Balance $16,000
Net Income $40,000
Depreciation Expense $24,000
Increase in Accounts Receivable $17,000
Decrease in Inventory $8,000
Decrease in Prepaid Expenses $4,000
Decrease in Accounts Payable $20,000
Increase in Accrued Liabilities $6,000
Decrease in Income Taxes Payable $3,000
During the year, Huntsman also had the following transactions:
- Made a $25,000 loan to Eccles Company
- Sold a piece of equipment with a cost of $30,000 and an accumulated depreciation of $20,000, for $15,000 cash.
- Had additional purchases of plant and equipment of $80,000
- Issued bonds payable for $50,000
- Issued common stock for $24,000
- Paid a cash dividend of $9,000
Required:
Question 1: Using the indirect method to determine the cash flows from operating activities, prepare a statement of cash flows for the year.