Statement of cash flows—indirect method The following items were gathered from Daniels Distributing”s general ledger:
|
Purchase of marketable securities |
$200,000 |
|
Depreciation and amortization expense |
31,980 |
|
Declaration of preferred dividends |
8,000 |
|
Decrease in Prepaid Assets |
3,700 |
|
Gain on sale of equipment |
5,200 |
|
Net income |
429,800 |
|
Beginning Cash balance |
43,740 |
|
Proceeds from loan |
125,000 |
|
Payment for purchase of equipment |
80,925 |
|
Increase in Accounts Receivable |
16,760 |
|
Stock-based compensation |
180,000 |
|
Proceeds from issuing common stock |
25,000 |
|
Increase in Inventory |
14,863 |
|
Decrease in Accounts Payable |
13,900 |
|
Ending Cash balance |
507,572 |
Required
Using the indirect method, construct Daniels Distributing”s statement of cash flows.