Answer:
Explanation:
The computation of cash flow statement under indirect method is shown below:
Cash flow from operating activities:
Net income = $167,832
Add: the loss on disposal of plant assets = $18,648
Add: Depreciation expenses = $65,268
Net cash flow from operating activities = $251,748
Cash flow from investing activities:
Sale of plant = $58,275 (Sale of equipment - accumulated depreciation - loss on sale of plant asset) = ($114,219 - $37,296 - $18,648)
Less: purchase of equipment = ($163,170)
Less: Cost of constructed equipment = ($123,543)
Net cash flow from financing activities = - $228,438
Cash flow from financing activities:
Less: Payment of cash dividend = $32,634
Net cash flow from financing activities = - $32,634
