reparing a Statement of Cash Flows

Monon Cable Television Company reported the following financial statements for 2013:

Additional Information:

1. Equipment (an old antenna) with a cost of $35,000 and accumulated depreciation of $34,000 was taken down and sold as scrap for $1,800 cash during 2013. A new antenna was purchased for cash at an installed cost of $60,000.
2. A building was purchased for $20,000 cash.
3. Trucks were purchased for $6,000 cash.
4. Depreciation expense for 2013 was $28,000.
5. A long-term note payable was issued for $40,000 cash.
6. Dividends of $14,200 were paid during 2013.

Required:

 

  Hide     1. Prepare a statement of cash flows, using the indirect method to compute net cash flow from operating activities. Use a minus sign for cash outflows and a net decrease in cash. Monon Cable Television Company Statement of Cash Flows For the Year Ended December 31, 2013 Cash flows from operating activities:                     $     Adjustments to reconcile net income to net cash provided by operating activities:                 $                                                                                             Net cash provided by operating activities           $ Cash flows from investing activities:                     $                                               Net cash used for investing activities             Cash flows from financing activities:                     $                   Net cash provided by financing activities                         $ Cash, 1/1/2013             Cash, 12/31/2013           $

 

2. Conceptual Connection: Explain what has been responsible for the decrease in cash.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

 

Icon Key

Question 1 of 16Problem 11-56A