Reference no: EM132591990

Use the following information to perform the calculations below (using the indirect method). Clearly label the amount of each answer as positive or negative and show all your calculations.

Net income                                      $401,000

Beginning accounts payable                $119,000

Depreciation expense                           97,000

Ending accounts payable                     146,000

Beginning accounts receivable             420,000

Purchase of long-term assets               612,000

Ending accounts receivable                    439,000

Issuance of long-term debt                   220,000

Beginning inventory                                 516,000

Issuance of stock for cash                     180,000

Ending inventory                                   550,000

Issuance of stock for long-term assets     110,000

Beginning prepaid insurance                    42,000

Purchase of treasury stock                     64,000

Ending prepaid insurance                       48,000

Sale of long-term investment at cost           56,000

Question 1: Calculate the amount of cash flows from operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 2: Calculate the amount of cash flows from investing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 3: Calculate the amount of cash flows from financing activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Question 4: Calculate the net change in cash