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28 October, 12:18

The following information is available for Windsor, Inc. for the year ended December 31, 2017. Beginning cash balance $ 45,720 Accounts payable decrease 3,759 Depreciation expense 164,592 Accounts receivable increase 8,331 Inventory increase 11,176 Net income 288,646 Cash received for sale of land at book value 35,560 Cash dividends paid 12,192 Income taxes payable increase 4,775 Cash used to purchase building 293,624 Cash used to purchase treasury stock 26,416 Cash received from issuing bonds 203,200 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e. g. - 15,000 or in parenthesis e. g. (15,000).)

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  1. 28 October, 14:07
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    Cash generated for the year: 348,793‬

    ending cash: 394,513

    Explanation:

    Operating Activities:

    Net Income 288,646

    depreciation 164,592

    adjusted 453,238

    change in Working capital:

    AP decrease 3,759

    Tax Payable 4,775

    AR increase (8,331)

    Inventory increase (11,176)

    total change (10,973)

    cash generated from operating activities 442.265

    Investing Activities

    proceed from land 35,560

    purchase of building (293,624)

    cash used from investing activities 258,064‬

    Financing Activities

    issuance of shares 203,200

    TS purchase (26,416)

    dividends paid (12,192)

    cash generated from financing activities 164,592

    Cash generated for the year: 348,793‬

    beginning cash 45,720

    ending cash 394,513
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