The following information is available for Splish Brothers Inc. for the year ended December 31, 2022.

Beginning cash balance $34,800

Accounts payable increase 8,265

Depreciation expense 59,450

Accounts receivable decrease 6,960

Inventory decrease 4,495

Net income 82,940

Cash received for sale of land at book value 150,800

Cash dividends paid 55,100

Income taxes payable decrease 5,655

Cash used to purchase land 117,450

Cash used to redeem bonds 95,700

Cash received from issuing stock 232,000

Required:

Prepare a statement of cash flows using the indirect method.

Cash balance at end of the year is $305,805

Explanation:

The statement of cash flow for Splish Brothers Inc is prepared below:

Net income $82,940

depreciation $59,450

accounts payable increase $8,265

accounts receivable decrease $6,960

inventory decrease $4,495

income tax payable decrease ($5,655)

Net cash from operating activities $156,455

Cash dividends paid ($55,100)

Redemption of bonds ($95,700)

Issue of common stock $232,000

Net cash from financing activities $81,200

Cash received for sale of land $150,800

purchase of land ($117,450)

Net cash from investing activities $33,350

Total increase in cash and equivalent $271,005

Cash at the beginning $34,800

Cash at the end of the year $305,805