Solution-Prepare a statement of cash flows using the

Prepare a statement of cash flows using the indirect method

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Reference no: EM133077231

Question - The income statement for Matt Smith, Ltd. is as follows:

Matt Smith, Ltd. Income Statement December 31, 2020
Sales		3,750,000
Beginning Inventory	1,000,000
Purchases	2,000,000
Ending Inventory	(500,000)
Cost of Goods Sold		(2,500,000)
Gross Profit		1,250,000
Depreciation & Amortization	300,000
Wages Expense	200,000
Insurance Expense	100,000
Total Expenses		(600,000)
Income Before Taxes		650,000
Income Taxes		(260,000)
Net Income		390,000
Other information:
Cash balance at 1/1/2020	258,125
Cash balance at 12/31/2020	774,375
Increase in Accounts Receivable	50,000
Increase in Preaid Insurance	60,000
Decrease in Accounts Payable	50,000
Increase in Wages Payable	30,000
Issued 10-year bonds payable	750,000
Purchased land	262,500
Purchased new machinery	450,000
Invested in a money market account	206,250
Declared dividends	375,000

Required - Prepare a Statement of Cash Flows using the Indirect Method for Operating Cash Flows?

Reference no: EM133077231

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Prepare a statement of cash flows using the indirect method

Reference no: EM133077231

Reference no: EM133077231

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