Computing cash flows from operating activities—indirect method One Way Cellular accountants have assembled the following data for the year ended September 30, 2012:
|
Cash receipt from sale of land |
$ 34,000 |
Net income |
$ 55,000 |
|
Depreciation expense |
20,000 |
Purchase of equipment |
39,000 |
|
Payment of dividends |
6,100 |
Decrease in current liabilities |
19,000 |
|
Cash receipt from issuance of |
|
Increase in current assets |
|
|
common stock |
30,000 |
other than cash |
14,000 |
Requirement
1. Prepare the operating activities section using the indirect method for One Way Cellular’s statement of cash flows for the year ended September 30, 2012.