Reference no: EM132880388
Problem - Statement of Cash Flows - The following items involve the cash flow activities of Rocky Horror Picture Co.:
a. Net income, $41,000
b. Payment of dividends, $16,000
c. Ten-year, $28,000 bonds payable were issued at face value
d. Depreciation expense, $11,000
e. Building acquired at a cost of $40,000
f. Accounts receivable decreased by $2,000
g. Accounts payable decreased by $4,000
h. Equipment acquired at a cost of $8,000
i. Inventories increased by $7,000
j. Beginning cash balance, $13,000
Required - Prepare Rocky Horror Picture's statement of cash flows using the indirect method.
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