Question

ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the year ended December 31, 2021

Cash Flows from Operating Activities
Net income $
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities
Cash Flows from Investing Activities
Net cash flows from investing activities
Cash Flows from Financing Activities
Net cash flows from financing activities
Net increase (decrease) in cash $2,445
Cash at the beginning of the period 7,525
Cash at the end of the period $9,970

Listed below in random order are line items to be included in the statement of cash flows.
Cash received from the sale of land $ 8,540
Issuance of common stock 12,800
Depreciation expense 5,410
Increase in accounts receivable 3,980
Decrease in accounts payable 1,705
Issuance of long-term notes payable 16, 220
Purchase of equipment 39,590
Decrease in inventory 1,420
Decrease in prepaid rent 850
Payment of dividends 6,260
Net income 11,300
Purchase of treasury stock 2,560
Prepare the statement of cash flows for ATM Software Developers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands (i.e., 10,000,000 should be entered as 10,000).)

Answer 1

To prepare the statement of cash flows for ATM Software Developers using the indirect method, we need to calculate the net cash flows from operating activities, investing activities, and financing activities. We also need to determine the net increase (decrease) in cash and the cash at the end of the period.

Step-by-step explanation:

Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and cash spent is outflows. The cash flow statement is a financial statement that reports a company's sources and use of cash over time.

Statement of Cash Flows for ATM Software Developers:
Net increase (decrease) in cash = Net cash flows from operating activities + Net cash flows from investing activities

Net cash flows from financing activities

Net cash flows from operating activities = $11,300 + $5,410 + $3,980 - $1,420 - $1,705 - $850 = $18,715

Net cash flows from investing activities = $8,540 - $39,590 = -$31,050

Net cash flows from financing activities = $12,800 + $16,220 - $6,260 - $2,560 = $20,200

Therefore, the Net increase (decrease) in cash = $18,715 + (-$31,050) + $20,200 = $7,865
Cash at the end of the period = Cash at the beginning of the period + Net increase (decrease) in cash = $7,525 + $7,865 = $15,390