Answer:
1. $175,800
2. -$41,200
Explanation:
The preparation of the Cash Flows from Operating Activities and investing activities —Indirect Method are shown below:
1. Cash flow from Operating activities - Indirect method
Net income $240,200
Adjustment made:
Add : Depreciation expense $31,600
Less: Increase in accounts receivable -$60,200 ($144,200 - $84,000)
Less: Increase in inventory -$33,600 ($201,600 - $168,000)
Add: Increase in accounts payable $35,600 ($86,000 - $50,400)
Less: Decrease in short term notes payable -$37,800 ($29,400 - $67,200)
Total of Adjustments - $64,400
Net Cash flow from Operating activities $175,800
2. Cash flow from Financing activities
Add: Sale of land $42,800 ($58,800 - $16,000)
Less: Purchase of equipment - $84,000
Net Cash flow from Financing activities -$41,200
