What do you mean by Cash Flow statement?

Managerial Accounting homework. Did I do it right? Prepare a statement of cash flow. 10 points?

• Prepare a statement of cash flow using the indirect method of reporting cash flows from operating activities.? On the basis of the following data for Branch Co. for the year ended December 31, 2011 and the preceding year. Prepare a statement of cash flow using the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and only entries in the retained earnings account were net income of $56,000 and cash dividends declared and paid of $18,000. 2011... 2010 Cash... $65,000... $54,000 Accounts receivable (net)... 78,000... 85,000 Inventories... 106,500... 90,000 Land... ----------- ... 20,000 Equipment ... 495,000... 370,000 Accumulated depreciation... (215,000)... (158,000) $ 529,500... $ 461,000 Accounts payable (merch. credit)... $53,500... $55,000 Common stock, $10 par... 200,000... 170,000 Paid in capital in excess of par- common stock... 62, 000... 60,000 retained earnings... 214,000... 176,000 $ 529,500... $ 461,000 My work. Did I do it right? Branch Company Statement of Cash Flows For the Year Ended December 31, 2011 Cash Flows for Operating Activities: Net income $56,000 Items to reconcile net income to cash flows for operating activities Depreciation expense $57,000 Loss on sale of land $5,000 Decrease in accounts receivable $7,000 Increase in inventories ($16,500) Decrease in accounts payable ($1,500) Net cash flows for operating activities $107,000 Cash Flows for Investing Activities: Cash paid for equipment purchased ($125,000) Cash received for land sold $15,000 Net cash flows for investing activities ($110,000) Cash Flows for Financing Activities: Cash received for common stock issued $32,000 Cash paid for dividends ($18,000) Net cash flows for financing activities $14,000 Net Increase in Cash $11,000 Cash balance - January 1 $54,000 Cash balance - December 31 $65,000

• Answer:

  Yes you are correct. Nicely done.