Answer:
Cash flow generated for the year: 71,790
Explanation:
From the information given we use the indirect method, we adjust net income for the non-monetary terms and then, adjust for the changes in working capital
The sale of assets will be enter under investing activities for the cash received regardless of the gain/loss at disposal
the stock transactions are considered financing from the firms perspective.
<u>Operating Activities:</u>
Net income           60,100
depreciation          16,540
loss at disposal          230
(21,770 - 9,770 = 12,000 against 11,770)
amortization            2,500
adjusted income:                        79,370
<em>changes in working capital:</em>
increase in current assets:        (29,000)
increase in current liabilities:  <u>     14,770  </u>
net change in working capital     14,230
from operating activities:            93,600
<u>Investing Activities</u>
sale of equipment                    11 ,770
purchase of stocks                 (16,000)
Building improvements        <u>  (28,770)  </u>
from investing activities         (33,000)
<u>Financing Activities</u>
Issuance of bonds payable     52, 190
Cash dividends                       (30,000)
Purchase of treasury Stocks <u>  (11, 000)   </u>
from financing activities           11,  190
Cash flow generated for the year:
93,600 - 33,000 + 11,190 = 71,790