Answer:
See the explanation section
Explanation:
Bonita Company
Statement of cash flow
For the year ended, December 31, 2017
(Indirect Method)
Net Income $720
<em>Cash flow from operating activities</em>
Depreciation $120
Gain on sale of investment (80)
Increase in Accounts receivable (460)
Decrease in Inventory 270
Increase in Accounts Payable 260
Decrease in accrued liabilities <u> (60) </u>
<u> 50 </u>
net cash provided by operating activities $770
Cash flows from investing activities
Purchase of plant asset (170)
Sale of Held-to-Maturity Investments 230
Net Cash Provided by Investing Activities 60
<em>Cash Flows from Financing Activities</em>
Payment of cash dividends (260)
Redemption of Bonds Payable (180)
Issuance of capital stock 190
Net cash used by financing activities <u> (250)</u>
Net increase in cash 580
Cash at the beginning period <u> 1,180</u>
Cash at the end of period 1,760