Ericson Corporation has the following activities for the past year:
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
