Question

1.

The net income reported on the income statement for the current year was $310,744. Depreciation recorded on fixed assets and amortization of patents for the year were $37,280 and $10,133, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$53,915	$45,355
Accounts Receivable	129,483	107,546
Inventories	105,094	87,496
Prepaid Expenses	3,822	6,325
Accounts Payable (merchandise creditors)	51,118	60,892

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

2.

Land costing $70,500 was sold for $99,000 cash. The gain on the sale was reported on the income statement as other revenue. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

Answer 1