Net income was $22,700. Dividends declared and paid were $19,200.
No noncash investing and financing activities occurred during 2025.
The land was sold for cash of $4,200.
(a)
Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.
-15,000 or in parenthesis e.g. (15,000).)
ORIOLE CORPORATION
Statement of Cash Flows - Indirect Method
Additional information:
Net income was $22,700. Dividends declared and paid were $19,200.
No noncash investing and financing activities occurred during 2025.
The land was sold for cash of $4,200.
Adjustments to reconcile net income to
Comparative Balance Sheets December 31
2025
2024
Cash
$15,300
$11,300
Accounts receivable
$21,000
$23,500
Land
$21,500
$27,600
Buildings
$71,000
$71,000
Accumulated depreciation-buildings
($16,000)
($10,200)
Total
$112,800
$123,200
Accounts payable
$12,500
$31,400
Common stock
$75,000
$70,000
Retained earnings
$25,300
$21,800
Total
$112,800
$123,200
Additional information:
1. Net income was $22,700. Dividends declared and paid were $19,200
2. No noncash investing and financing activities occurred during 2025
3. The land was sold for cash of $4,200