Question: Computing cash flows from investing and financing activities Use the data in Short Exercise S14-5 to complete this exercise. Prepare Winding Road Cellular’s statement of cash flows using the indirect method for the year ended April 30, 2018. Assume beginning and ending Cash are \(48,000 and \)52,200, respectively.

Cash flows from operating activities

Net Income

$55,000

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation expense

$2,000

Increase in current assets other than cash

($27,000)

Decrease in current liabilities

($20,000)

Net cash provided by operating activities

$10,000

Winding Road Cellular

Statement of cash flows

Year ended 31st December, 2018

Cash flows from operating activities

Net Income

$55,000

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation expense

$2,000

Increase in current assets other than cash

($27,000)

Decrease in current liabilities

($20,000)

Net cash provided by operating activities

$10,000

Cash flows from investing activities

Cash receipt from sale of land

$27,000

Cash purchase of equipment

($44,000)

Net cash used for investing activities

($17,000)

Cash flows from financing activities

Cash receipt from issuance of common stock

$17,000

Cash payment of dividends

($5,800)

Net cash provided by financing activities

$11,200

Net Increase/(Decrease) in cash

$4,200

Cash balance, December 31, 2017

$48,000

Cash balance, December 31, 2018

$52,200