Statement of Cash Flows (Indirect Method)
For the 3 months ended March 31, 2020
Angel Company
Net income $64,018
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 1,250 Depreciation
Equity method earnings from Titan investment (5,880) Equity investment earnings
Increase in value of marketable investments (100) Allowance for decrease in value
Deferred taxes payable 336 Deferred taxes
Gain on sale of marketable investments (2,400) Gain on sale of marketable investments
Changes in assets and liabilities:
Accounts receivable (25,000) Accounts receivable
Inventory (17,500) Inventory
Accounts payable 17,197 Accounts payable
Income taxes payable 13,529 Income taxes payable
Other assets - -
Bonds payable 65,000 Bonds payable
Net cash provided by operating activities $44,570
Investing activities:
Proceeds from sale of marketable securities $11,400 Proceeds from sale of securities
Proceeds from condemnation award 29,860 Condemnation award proceeds
Purchase of equipment (81,500) Equipment purchases
Net cash used in investing activities (40,240)
Financing activities:
Issuance of bonds payable $65,000 Bond issuance
Dividends paid (8,000) Dividends paid
Issuance of common stock 30,000 Common stock issuance
Net cash provided by financing activities 87,000
Net increase in cash $91,330
Cash at beginning of period 25,300 Cash, beginning of period
Cash at end of period $116,630 Cash, end of period