Statement of cash flows (indirect method) Cash flows from operating activities Net income 72,600 adjustments to net income depreciation 4,000 Gan on sale of investments -7,000 Increase in AR -36,000 Decrease in inventory 40,000 Increased in Accounts payable 13,000 Decrease in Accrued liabilities -3,100 net cash provided by operating activities 83,500 Cash flows from investing activities Purchase of Plant assets -16,000 Sale of long-term investments 20,000 net cash provided by investing activities 4,000 Cash flows from financing activities retiement of bonds -31,000 payment of dividend -32,500 sale of common stock 6,000 net cash provided by financing activities -57,500 net increase in cash 30,000 Cash balance, beginning 230,000 cash balance, ending 260,000 Statement of Cash flows (direct method) Cash flows from operating activities cash received from customers 714,000 (sales – increase in AR) cash paid for merchandise 477,000 (cogs – decrease in invnetory – increase in AP) cash paid for other operating expenes 105,100 (selling & admin exp + decrease in accrued liab – depreciation) cash paid for income taxes 48,400 net cash provided b oeprating activities 83,500 Cash flows from investing activities Purchase of Plant assets -16,000 Sale of long-term investments 20,000 net cash provided by investing activities 4,000 Cash flows from financing activities retiement of bonds -31,000 payment of dividend -32,500 sale of common stock 6,000 net cash provided by financing activities -57,500 net increase in cash 30,000 Cash balance, beginning 230,000 cash balance, ending 260,000