Question: Preparing the statement of cash flows—indirect method Use the Preston Media Corporation data in Short Exercise S14-7 and the results you calculated from the requirements. Prepare Preston Media’s statement of cash flows— indirect method—for the year ended December 31, 2018.

Cash flows from operating activities

Amount

Amount

Net Income

$19,000

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

Depreciation expense

$11,000

Increase in accounts receivables

($4,500)

Increase in accounts payable

$3,500

Net cash provided by operating activities

$29,000

Winding Road Cellular

Statement of cash flows

Cash flows from operating activities

Net Income

$19,000

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

Depreciation expense

$11,000

Increase in accounts receivables

($4,500)

Increase in accounts payable

$3,500

Net cash provided by operating activities

$29,000

Cash flows from investing activities

Cash purchase of plant assets

($21,000)

Net cash used for investing activities

($21,000)

Cash flows from financing activities

Cash receipt from issuance of common stock

$4,000

Cash payment of dividends

($7,900)

Payment to notes payable

($7,400)

Cash receipt from issuance of note payable

$4,400

Net cash provided by financing activities

($6,900)

Net Increase/(Decrease) in cash

$1,100

Cash balance, December 31, 2017

$3,900

Cash balance, December 31, 2018

$5,000