Chapter 5, Problem 9E

Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone Shoelaces Required:

1. a. Net income, $22,900
2. b. Payment for purchase of land, $4,000
3. c. Payment for retirement of bonds, $6,000
4. d. Depreciation expense, $7,800
5. e. Receipt from issuance of common stock, $7,000
6. f. Patent amortization expense, $2,700
7. g. Increase in accounts receivable, $3,400
8. h. Payment of dividends, $5,000
9. i. Decrease in accounts payable, $2,600

Required:

Prepare the operating activities section of Tyrone’s statement of cash flows using the indirect method.