Required: A) Prepare a statement of cash flows using the indirect method

FANCY FOOTWORK COMPANY STATEMENT OF CASH FLOW As of December 31 Indirect Method

CASH FLOW FROM OPERATING ACTIVITIES Net Income Depreciation on Assets Gain on sale of investments Increase in account receivable Decrease in merchandise inventory Increase in account payable Decrease in accrued payable Net Cash Flow from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Sale of investments Purchase of assets Net Cash Flow from Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Dividends Paid Issue of Common Stock Repaid Bond Payable Net Cash Flow from Financing Activities Net Cash Flows Add Beginning cash balance Ending Cash balance

$ 72,600 $ 4,000 $ (7,000) $ (36,000) $ 40,000 $ 13,000 $ (3,100) $ 83,500

$ 20,000 $ (16,000) $ 4,000

$ (32,500) $ 6,000 $ (31,000) $ (57,500) $ 30,000 $ 230,000 $ 260,000

B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

FANCY FOOTWORK COMPANY STATEMENT OF CASH FLOW AS OF December 31 Direct Method

CASH FLOW FROM OPERATING ACTIVITIES Cash received from customers Cash paid to suppliers Operating expenses Income tax paid Net Cash Flow from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Sale of investments Purchase of assets Net Cash Flow from Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Dividends Paid Issue of Common Stock Repaid Bond Payable Net Cash Flow from Financing Activities Net Cash Flows Add Beginning balance Ending Cash Balance

$ $ $ $ $

714,000 (477,000) (105,100) (48,400) 83,500

$ 20,000 $ (16,000) $ 4,000

$ (32,500) $ 6,000 $ (31,000) $ (57,500) $ 30,000 $ 230,000 $ 260,000

tion schedule.)