Answer and Explanation:
The preparation of cash flows, using the indirect method is shown below:-
Cash flow from operating activities
Net income $141,680
Adjustment made
Add: Depreciation $14,790
Add: Loss on sale of
investment $10,200
Current operating Assets and liabilities change
Less: Increase in accounts receivable -$19,040
Less: Increase in inventories -$8,670
Add: Increase in accounts payable $11,560
Add: Accrued accounts payable increased $3,740
Net cash flow from operating activities $154,260
Net cash flow from Investing activities
Investment sale $91,800
Less: Equipment purchased -$80,580
Less: Land purchased -$295,800
Net cash flow from investing activities -$284,580
Cash flow from financing activities
Common stock issued $250,000
Less: Paid Dividend -$96,900
Cash flow from financing activities $153,100
Net increase or decrease in cash $22,780
Add: Beginning cash balance $47,940
Ending cash balance $70,720
Working note
Dividend paid = Dividend declared - Increase in Dividend payable
= $102,000 - $5,100
= $96,900
Loss on sale of investment = Sale of investment of amount realized - Investment cost
= $91,800 - $102,000
= -$10,200
The positive amount represents the cash inflow and the negative amount represents the outflow of cash