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Wednesday, 25 April 2018

EricsonCorporation has the following activities for the past​ year:

Ericson 
 Net income
. . . . . . . . . . . . . . . . . . . . .
$ ?
 
Cost of goods sold. . . . . . . . . . . . . .
$49,000
Payment of dividends. . . . . . . . . . . .
$6,000
 
Other operating expenses. . . . . . . .
$14,000
Proceeds from issuance of stock. . .
$73,000
 
Depreciation expense. . . . . . . . . . . .
$20,000
Purchase of treasury stock. . . . . . . .
$13,000
 
Purchase of equipment with cash. . .
$26,000
Sales revenue. . . . . . . . . . . . . . . . . .
$124,000
 
Proceeds from sale of land. . . . . . . .
$19,000
Payment of long-term note payable.
$13,000
Increase in current assets
 
Decrease in current liabilities. . . . . .
$9,000
 
other than cash. . . . . . . . . . . . . .
$6,000
Requirement
Prepare the operating activities section of Ericson Corporation's statement of cash flows for the year ended December  31, using the indirect method for operating cash flows. ​(Use parentheses or a minus sign for numbers to be  subtracted.)

Ericson Corporation

Statement of Cash Flows—Operating Activities Section (Indirect Method)

For the Year Ended December 31

Operating Activities:



Net income

$41,000

Adjustments to reconcile net income to cash basis



Depreciation expense
$20,000


Increase in current assets other than cash
(6,000)


Decrease in current liabilities
(9,000)
5,000

Net cash provided by (used for) operating activities

46,000



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