Question

The following information is available for Moab Corporation for the year ended December 31, 2022

Nows Prepare a statement of cash flows using the indirect method. E12.8 (LO 2), AP The following information is available for Moab corpo December 31, 2022. le for Moab Corporation for the year ended $ 24,000 5,700 41,000 Beginning cash balance Accounts payable increase Depreciation expense Accounts receivable decrease Inventory decrease Net income Cash received for sale of land at book value Cash dividends paid Income taxes payable decrease Cash used to purchase land Cash used to redeem bonds Cash received from issuing stock 4,800 3,100 57,200 104,000 38,000 3,900 81,000 66,000 160,000 Instructions Prepare a statement of cash flows using the indirect method.

Answer 1

Moab Corporation
Statement of Cash Flows (Indirect method)
For the Year Ended December 31, 2022
Cash flow from operating activities:
Net income	$57200
Adjustments to reconcile net income to net cash flow from operating activities
Depreciation expense	41000
Accounts payable increase	5700
Accounts receivable decrease	4800
Inventory decrease	3100
Income taxes payable decrease	-3900
Net cash provided by operating activities		$107900
Cash flow from investing activities:
Cash received for sale of land	104000
Cash used to purchase land	-81000
Net cash provided by investing activities		23000
Cash flow from financing activities:
Cash dividends paid	-38000
Cash used to redeem bonds	-66000
Cash received from issuing stock	160000
Net cash provided by financing activities		56000
Net increase in cash ($107900+23000+56000)		$186900
Add: Beginning cash balance		24000
Ending cash balance		$210900