In budgetary bookkeeping, a cash flow statement, otherwise called statement of cash flows , is a fiscal report that demonstrates how changes in monetary record records and pay influence cash and cash reciprocals, and separates the examination to operating, investing, and financing activities. To compute: Prepare a statement of cash flows for Erie using the indirect method to compute net cash flow from operating activities.

Question

Erie Company reported the following comparative balance sheets: Additional Information:1. Net income for 2019 was $20,500.2. Cash dividends of $7,900 were declared and paid during 2019.3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additionallong-term investments were purchased for $14,400 cash.4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for$3,800 cash. New equipment was purchased for $27,350 cash.5. Depreciation expense was $18,900.6. A principal payment of $25,000 was made on long-term notes.7. Common stock was sold for $31,500 cash.Required:Prepare a statement of cash flows for Erie using the indirect method to compute net cash flowfrom operating activities.

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Chapter 11, Problem 55PSA

To determine

In budgetary bookkeeping, a cash flow statement, otherwise called statement of cash flows, is a fiscal report that demonstrates how changes in monetary record records and pay influence cash and cash reciprocals, and separates the examination to operating, investing, and financing activities.

To compute:

Prepare a statement of cash flows for Erie using the indirect method to compute net cash flow from operating activities.

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Erie Company reported the following comparative balance sheets: Additional Information:1. Net income for 2019 was $20,500.2. Cash dividends of $7,900 were declared and paid during 2019.3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additionallong-term investments were purchased for $14,400 cash.4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for$3,800 cash. New equipment was purchased for $27,350 cash.5. Depreciation expense was $18,900.6. A principal payment of $25,000 was made on long-term notes.7. Common stock was sold for $31,500 cash.Required:Prepare a statement of cash flows for Erie using the indirect method to compute net cash flowfrom operating activities.

a. What is the net cash provided by operating activities?b. What is the net cash used in investing activities?

REQUIRED Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: Calculate the following for the year ended 31 December 2021: Depreciation Dividends paid Of what significance is this statement of cash flows to the shareholders of Mantis Limited? Comment on the following: Cash flows from operating activities (R181 800) 1.3.2. Increase in inventory (R808 000) Increase in receivables (R606 000) Interest paid (R80 800) Cash flows from investing activities (R2 343 200) INFORMATION MANTIS LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 R Cash flows from operating activities (181 800) Operating profit 979 700 Depreciation ? Profit before working capital changes ? Working capital changes (808 000) Increase in inventory (808 000) Increase in receivables…