The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: a. Net income, $43,700 b. Payment of dividends, $15,500 C. Ten-year, $33,000 bonds payable were issued at face value d. Depreciation expense, $21,900 e. Building acquired at a cost of $37,800 f. Accounts receivable decreased by $3,700 g. Accounts payable decreased by $4,000 h. Equipment acquired at a cost of $6,100 i. Inventories increased by $7,400 J. Beginning cash balance, $27,600 Reguired
The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: a. Net income, $43,700 b. Payment of dividends, $15,500 C. Ten-year, $33,000 bonds payable were issued at face value d. Depreciation expense, $21,900 e. Building acquired at a cost of $37,800 f. Accounts receivable decreased by $3,700 g. Accounts payable decreased by $4,000 h. Equipment acquired at a cost of $6,100 i. Inventories increased by $7,400 J. Beginning cash balance, $27,600 Reguired
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:
a. Net income, $43,700
b. Payment of dividends, $15,500
c. Ten-year, $33,000 bonds payable were issued at face value
d. Depreciation expense, $21,900
e. Building acquired at a cost of $37,800
f. Accounts receivable decreased by $3,700
g. Accounts payable decreased by $4,000
h. Equipment acquired at a cost of $6,100
i. Inventories increased by $7,400
j. Beginning cash balance, $27,600
Required:
Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.
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