Answer:
The preparation of the cash flow statement is presented below:
Explanation:
Riverbed Corporation
Statement of Cash Flows
For the year ended December 31,2020
Cash flows from Operating Activities
Net Income: $328,000
Adjustment to net income is:
Add: Depreciation Expense $34,850 ($217,300 - $182,450)
Add: Loss on sale of Investments $20,500
Add: Decrease in Accounts receivable $10,250 ($369,000 - $379,250)
Less: Decrease in Current Liabilities ($34,850) ($274,700 - $309,550)
Net cash flow from operating activities $358,750 A
Cash flows from Investing activities
Purchase of equipment ($118,900) ($610,900 - $492,000)
Add Sale of Investment $24,600 ($151,700 - $106,600 - $20,500)
Net cash used by investment activities ($94,300) B
Cash flows from Financing activities
payment of dividends ($61,500)
Net cash used by financing activities ($61,500) C
Net Increase in cash $202,950 (A + B + C)
