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Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2013: Net income, $53,500

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Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY

HORROR PICTURE CO. for 2013:

  1. Net income, $53,500
  2. Payment of dividends, $16,400
  3. Ten-year, $35,500 bonds payable were issued at face value
  4. Depreciation expense, $13,100
  5. Building was acquired at a cost of $36,700
  6. Accounts receivable decreased by $3,300
  7. Accounts payable decreased by $5,000
  8. Equipment was acquired at a cost of $7,200
  9. Inventories increased by $7,000
  10. Beginning cash balance, $24,600

Required:

HidePrepare Rocky Horror Picture’s statement of cash flows for 2013 using the indirect method. Use a minus sign for any negative amounts.

ROCKY HORROR PICTURE CO.Statement of Cash FlowsFor Year Ended December 31, 2013Net Cash Flow From Operating ActivitiesLess: Decrease in accounts payableAdd: Increase in inventoriesLess: Decrease in accounts receivableCash, January 1, 2013Less: Increase in inventoriesNet incomeCash, December 31, 2013Less: Depreciation expensePayment for purchase of buildingAdd: Decrease in accounts payableCorrect 5$ Correct 6Adjustments for differences between income flows and cash flows from operating activities:Add: Increase in inventoriesPayment of dividendsLess: Decrease in accounts receivableReceipt from issuance of bondsPayment for purchase of equipmentPayment for purchase of buildingAdd: Decrease in accounts payableLess: Depreciation expenseNet incomeAdd: Depreciation expenseCorrect 8Correct 9Less: Decrease in accounts receivableLess: Depreciation expenseReceipt from issuance of bondsAdd: Decrease in accounts receivablePayment of dividendsNet incomeAdd: Decrease in accounts payableAdd: Increase in inventoriesCash, January 1, 2013Cash, December 31, 2013Correct 10Correct 11Add: Increase in inventoriesPayment of dividendsPayment for purchase of equipmentPayment for purchase of buildingAdd: Decrease in accounts payableLess: Increase in inventoriesReceipt from issuance of bondsLess: Decrease in accounts receivableNet incomeLess: Depreciation expenseCorrect 12Correct 13Payment for purchase of buildingPayment for purchase of equipmentLess: Decrease in accounts payableNet incomeLess: Decrease in accounts receivableCash, January 1, 2013Less: Depreciation expensePayment of dividendsReceipt from issuance of bondsCash, December 31, 2013Correct 14Correct 15Net cash provided by operating activities$ Correct 17Cash Flows From Investing ActivitiesNet incomeLess: Increase in inventoriesAdd: Increase in inventoriesAdd: Depreciation expenseAdd: Decrease in accounts receivablePayment for purchase of buildingLess: Decrease in accounts payableAdd: Decrease in accounts payableLess: Decrease in accounts receivableLess: Depreciation expenseCorrect 19$ Correct 20Less: Decrease in accounts payableLess: Increase in inventoriesReceipt from issuance of bondsCash, January 1, 2013Add: Decrease in accounts payableNet incomePayment of dividendsAdd: Increase in inventoriesPayment for purchase of equipmentCash, December 31, 2013Correct 21Correct 22Net cash used for investing activitiesCorrect 24Cash Flows From Financing ActivitiesAdd: Depreciation expensePayment for purchase of buildingAdd: Increase in inventoriesAdd: Decrease in accounts payableAdd: Decrease in accounts receivablePayment of dividendsCash, January 1, 2013Cash, December 31, 2013Payment for purchase of equipmentNet incomeCorrect 26$ Correct 27Cash, December 31, 2013Receipt from issuance of bondsAdd: Decrease in accounts receivablePayment for purchase of buildingNet incomeLess: Depreciation expenseAdd: Increase in inventoriesAdd: Depreciation expenseLess: Increase in inventoriesLess: Decrease in accounts receivableCorrect 28Correct 29Net cash provided by financing activitiesCorrect 31Net increase in cashNet decrease in cashCorrect 32$ Correct 33Cash, December 31, 2013Cash, January 1, 2013Net increase in cashNet decrease in cashCorrect 34Correct 35Cash, January 1, 2013Net decrease in cashCash, December 31, 2013Net increase in cashCorrect 36$ Correct 37
 
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