Question

The following information is available for Sunland Company for the year ended December 31, 2022.

Beginning cash balance $38,250
Accounts payable decrease 3,145
Depreciation expense 137,700
Accounts receivable increase 6,970
Inventory increase 9,350
Net income 241,485
Cash received for sale of land at book value 29,750
Cash dividends paid 10,200
Income taxes payable increase 3,995
Cash used to purchase building 245,650
Cash used to purchase treasury stock 22,100
Cash received from issuing bonds 170,000

Required:
Prepare a statement of cash flows using the indirect method.

Answer 1

see explanation

Step-by-step explanation:

Indirect method method reconciles the Net Income to the Operating Cash flow by adjusting for non -cash items and changes in working capital included in Net Income.

Remember to show Cash flows from Operating, Investing and Financing Activities as these make up a full Cash flow Statement.