Chapter 13, Problem 13.15AE

Calculate operating cash flows (indirect method) (Learning Objective 2)

Ericson Corporation has the following activities for the past year:

Net income	$ ?
Payment of dividends	$ 6,000
Proceeds from issuance of stock	$ 73,000
Purchase of treasury stock	$ 13,000
Sales revenue	$124,000
Payment of long-term note payable	$13,000
Decrease in current liabilities	$ 9,000
Cost of goods sold	$ 49,000
Other operating expenses	$ 14,000
Depreciation expense	$ 20,000
Purchase of equipment with cash	$ 26,000
Proceeds from sale of land	$ 19,000
Increase in current assets other than cash	$ 6,000

Requirement

Prepare the operating activities section of Ericson Corporation’s statement of cash flows for the year ended December 31, using the indirect method for operating cash flows.