I Have To Prepare Annual Statement Of Cash Flow Using Indirect Methid Of Disclosing Cash Flows From Operations.

The Given Data Is Ending Balance Beginning Balance

Accounts Receivable 12000 19000
Inventory 4000 11000
Supplies 1000 2500
Prepaid Rent 3500 3000
Accounts Payable 15000 14000
Unearned Rent Revenue 6000 1500
Salaries Payable 1000 2000


During The Year, The Following Transactions Were Recorded
The Purchase Of Investment Securities $12,000
The Payment Of Cash Dividends $3,000
The Sale Of Land Costing $40,000 For Proceeds Of $54,000
The Annual Depreciation Of Plant And Equipment $9,000
The Issue Of Common Stock For Cash $5000
Annual Accrual Net Income $156,000

The Net Cash Is $214,500
But Iam Getting $216,000

Thx In Asvance

The indirect method splits the cashflow statement into three parts.

1 - Operating Activities
This would include the ending net income, you need to add back any depreciation or amortization. You also need to include the CHANGE in any receivables and payables. This would be YR 1 ending - YR 2 ending. If receivables increase than cash is negative because that is cash you did not receive but was included in net income. If payables increased cash is positive because that is cash you did not pay.

2 - Financing Activities
This would include any long-term bank notes you took out during the current year. Include the full amount of the notes.

3 - Investing Activities
This would include any cash injections from you or any outside investors. This would also include and stock that was issued for that year. If you invested in something than that would decrease your cash and would be a negative.

This is pretty basic but you should be able to build it from there.