Answer:
Please see the statement of cash flows prepared below.
Explanation:
Ramos Corporation
Statement of cash flows
Net income $501,437
Add: Depreciation expense 285,930
Income taxes payable increase 8,296
Less: Accounts payable decrease (6,531)
Accounts receivable increase (14,473)
Inventory increase (19,415)
Net cash flows from operating activities (a)....... 755,244
Proceed from sale of land 61,775
Purchase of building (510,085)
Net cash flows from investing activities (b)....... (448,310)
Cash dividends paid (21,180)
Purchase treasury stock (45,890)
Proceed from the issue of bonds 353,000
Net cash flows from financing activities (c)....... 285,930
Net increase in cash and cash equivalents (d=a+b+c)592,864
Cash balance at the beginning of the year 79,425
Cash balance at the end of the year $672,289
