Answer:
Cash Flow from Operating Activities Amount$
Net Income 30000
Add Depreciation Expense 25000
Increase in Accounts Payable 11000
Increase in Accounts Receivables -10000
Increase in Prepaid Insurance -6000
Decrease in Salaries and Wages Payable <u> -1000
</u>
Net Cash Flow from Operating Activities A 49000
Cash Flow from Investing Activities
Acquisition of Equipment for Cash -10000
Proceeds from Sale of Long-Term Investment <u>22000</u>
Net Cash Flow from Investing Activities B 12000
Cash Flow from Financing Activities
Redemption of Bonds Payable -34000
Proceeds from Issuance of Common Stock 20000
Payment of Cash Dividends -6000
Collection of Principal on Long-Term Loan 16000
Net Cash Used in Financing Activities C -4000
Opening Cash Balance 91000
Add Increase in Cash (A+B+C) <u>57000</u>
Closing Cash Balance <u>148000</u>