Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income $ 221,000 28,000 10,000 37,000 14,000 50,000 17,000 10,000 69,000 48,000 3,500 249,000 Repayment of notes payable Cash received from the sale of land Issuance of common stock Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO
Consultants.
Listed below in random order are line items to be included in the statement of cash flows.
Purchase of equipment
Increase in inventory
Increase in prepaid rent
Payment of dividends
Depreciation expense
Increase in accounts receivable
Increase in accounts payable
Loss on sale of land
Net income
$ 221,000
28,000
10,000
37,000
14,000
50,000
17,000
10,000
69,000
48,000
3,500
249,000
Repayment of notes payable
Cash received from the sale of land
Issuance of common stock
Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values
should be indicated by minus sign.)
CEO CONSULTANTS
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash flows from operating activities:
Transcribed Image Text:Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income $ 221,000 28,000 10,000 37,000 14,000 50,000 17,000 10,000 69,000 48,000 3,500 249,000 Repayment of notes payable Cash received from the sale of land Issuance of common stock Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.) CEO CONSULTANTS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities:
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