The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the opertaing section of the statement of cash flows for Sandy Shores Enterprises for the year ended Dec 31, 2007, using the INDIRECT METHOD
Principle payments on long term debt $50,000
Increase in accounts payable $24,300
Acquisition of equipment by issuing long term not payable $70,000
Amortization expense $18,700
Proceeds from sale of investments, not including a $5,100 gain $49,100
Increase in acounts receivable $8,700
Cash payments to purchase plan assets $62,000
Decrease in accrued liabilites $60,300
Payment of cash dividends $64,500
Proceeds from sale of plant assets, not including a $7,400 loss $22,600
Net income $174,100
Depreciation expense $35,500
Proceeds from issuance of common stock $300,000
Increase in inventory $71,400
Bonds payable converted into common stock $130,000
Decrease in prepaid expenses $12,800
Cash Balance: dec 31, 2006 $52,500
Cash Balance: Dec 31, 2007 $373,000
Principle payments on long term debt $50,000
Increase in accounts payable $24,300
Acquisition of equipment by issuing long term not payable $70,000
Amortization expense $18,700
Proceeds from sale of investments, not including a $5,100 gain $49,100
Increase in acounts receivable $8,700
Cash payments to purchase plan assets $62,000
Decrease in accrued liabilites $60,300
Payment of cash dividends $64,500
Proceeds from sale of plant assets, not including a $7,400 loss $22,600
Net income $174,100
Depreciation expense $35,500
Proceeds from issuance of common stock $300,000
Increase in inventory $71,400
Bonds payable converted into common stock $130,000
Decrease in prepaid expenses $12,800
Cash Balance: dec 31, 2006 $52,500
Cash Balance: Dec 31, 2007 $373,000