Chapter 13, Problem 13.25BE

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

Thompson Corporation has the following activities for the past year:

Net income	$ ?
Payment of dividends	$ 8,000
Proceeds from issuance of stock	$ 79,000
Purchase of treasury stock	$ 16,000
Sales revenue	$118,000
Payment of long-term note payable	$ 11,000
Decrease in current liabilities	$6,000
Cost of goods sold	$53,000
Other operating expenses	$13,000
Depreciation expense	$22,000
Purchase of equipment with cash	$28,000
Proceeds from sale of land	$23,000
Increase in current assets other than cash	$ 7,000

Requirement

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