4 Bauer Company Statement of Cash Flows For the year ended December 31, 2004 Cash Flows from Operations: (Indirect Method) Net Income $56,200 Add (deduct) to reconcile net income to net cash flow Depreciation Expense 13,400 Loss from sale of land 6,700 Decrease in Accounts Receivable 2,400 Increase in Inventory (8,400) Decrease in Interest Receivable 700 Increase in Prepaid expenses (900) Increase in Accounts Payable 2,100 Decrease in wages Payable (1,700) Decrease in Taxes Payable (700) Decrease in Accrued Liabilities (1,500) Increase in Interest Payable 800 Cash Provided by Operations 69,100 Cash Flows from Investing Activities: Purchase of long-term investment (4,900) Proceeds from sale of land 46,900 Cash Provided by Investing Activities 42,000 Cash Flows from Financing Activities: Retirement of long-term note (61,000) Proceeds from issuance of Common Stock 3,900 Cash used to pay dividends (38,100) Cash Used by Financing Activities (95,200) Net Increase in Cash Balance $15,900 Beginning Cash Balance $8,600 Ending Cash Balance $24,5005Non-cash Investing and financing activities: Purchase of assets using a long-term note 14,300Retirement of short-term note by stock issuance
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