Question

Balance sheet data for Kilroy Company for 2022 appears below:

                               January 1, 2022     December 31, 2022
ASSETS:
  Cash                             27,000               43,000
  Accounts receivable              39,000               26,000
  Inventory                        42,000               88,000
  Prepaid insurance                21,000               29,000
  Land                             37,000               72,000
  Equipment                        61,000               94,000
  Accumulated depreciation        <14,000>             <25,000>

LIABILITIES + EQUITY:
  Accounts payable                 33,000               41,000
  Income taxes payable             21,000               15,000
  Unearned revenue                 25,000               39,000
  Notes payable                    51,000               75,000
  Common stock                     34,000               93,000
  Retained earnings                49,000               64,000

Kilroy Company's 2022 income statement is given below:

  Sales revenue                               329,000
  Cost of goods sold                          242,000
  Depreciation expense                         11,000
  Insurance expense                            16,000
  Loss on sale of land                         22,000
  Income tax expense                           10,000
  Net income                                   28,000

Kilroy Company purchased land for $69,000 cash during 2022.

Calculate the net cash flow from operating activities reported by
Kilroy Company in its 2022 statement of cash flows. If your answer
is negative, place a minus sign in front of your answer with no
spaces in between (e.g., -1234).

Answer 1

KILROY COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Net Income		$ 28,000
Adjustments to reconcile net income to ;
Depreciation expense	$   11,000
Loss on sale of land	$   22,000
Decrease in accounts receivable	$   13,000		39000-26000
Increase in inventory	$ -46,000		42000-88000
Increase in prepaid insurance	$ -8,000		21000-29000
Increase in accounts payable	$      8,000		41000-33000
Decrease in income tax payable	$ -6,000		15000-21000
Increase in unearned revenue	$   14,000		39000-25000
		$    8,000
Net cash provided by operating activities		$ 36,000

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