Chapter 10
The Statement of Cash Flow
485
AP-5A (
2
)
The net income for the year ended on August 31, 2016 for Wonderstruck Corporation was
$147,000. Additional data for the year is provided below.
Purchase of property, plant and equipment
$257,000
Depreciation of equipment
$11,000
Dividends paid
$42,000
Net increase in accounts receivable
$22,000
Loss on sale of property
$17,000
Calculate the increase or decrease in cash from operating activities.
AP-6A (
2
)
Mellon Incorporated had a net income for 2016 of $320,000. Included on the income
statement was a loss on sale of equipment for $5,000, a gain on the sale of investments for
$15,000, depreciation of $8,000 and interest of $3,000. Calculate the increase or decrease in
cash from operating activities using the indirect method.
