Question

Question text Statement of Cash Flows (Indirect Method) Use the following information regarding the Hamilton Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $3,000 Accounts receivable increase 10,000 Wages payable decrease 9,000 Amortization expense 19,000 Cash balance, January 1 31,000 Cash balance, December 31 2,000 Cash paid as dividends 6,000 Cash paid to purchase land 110,000 Cash paid to retire bonds payable at par 65,000 Cash received from issuance of common stock 45,000 Cash received from sale of equipment 13,000 Depreciation expense 39,000 Gain on sale of equipment 16,000 Inventory increase 11,000 Net income 94,000 Prepaid expenses increase 9,000 Remember to use negative signs with answers when appropriate. HAMILTON CORPORATION Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income Answer Add (deduct) items to convert net income to cash basis Depreciation Answer Amortization Answer Gain on Sale of Equipment Answer Accounts Receivable Increase Answer Inventory Increase Answer Prepaid Expenses Increase Answer Accounts Payable Decrease Answer Wages Payable Decrease Answer Cash Flow Provided by Operating Activities Answer Cash Flow from Investing Activities Sale of Equipment Answer Purchase of Land Answer Cash Used by Investing Activities Answer Cash Flow from Financing Activities Issuance of Common Stock Answer Retirement of Bonds Payable Answer Payment of Dividends Answer Cash Used by Financing Activities Answer Net Decrease in Cash Answer Cash at Beginning of Year Answer Cash at End of Year Answer

Answer 1