Answer:
Question requires that the Cashflow statement be drawn up using the Indirect method.
Blue Spruce Corp.
Statement of Cashflows
For the Year ended December 31, 2022
Cashflow from Operating Activities
Net Income $397,740
Adjustments to reconcile Net income to
net cash provided by operating activities.
Depreciation expense $226,800
Accounts Payable decrease ($5,180)
Accounts Receivable income ($11,480)
Inventory increase (15,400)
Income taxes payable increase $6,580
$201,320
Net Cash provided by Operating Activities $599,060
Cashflows from Investing Activities
Sales of land at book value $49,000
Purchase of building (404,600)
Net Cash used in Investing Activities ($355,600)
Cashflows from Financing Activities
Issue of Bonds $280,000
Cash dividends paid ($16,800)
Purchase of Treasury stock ($36,400)
Net Cash provided by Financing activities $226,800
Net increase in Cash $470,260
Beginning Cash Balance $63,000
Ending Cash balance $533,260
