Exercise 21–31 (continued) Spreadsheet for the Statement of Cash Flows (continued) Dec.31 Changes Dec. 31 2015 Debits Credits 2016 Statement of Cash Flows Net income 103 (1) Adjustments for noncash effects: Depreciation expense 50 (2) Increase in accounts receivable 46 (3) Increase in prepaid insurance 4 (4) Increase in inventory 110 (5) Decrease in accounts payable 13 (6) Decrease in accrued expenses 5 (7) Net cash flows (25) Investing activities: Purchase of equipment 230 (8) Sale of equipment 9 (9) Net cash flows (221) Financing activities: Issuance of note payable 50 (10) Issuance of bonds payable 160 (11) Payment of cash dividends 50 (12) 160 Net cash flows 86 (86) Net decrease in cash (13) Totals 1,087 1,087
Exercise 21–31 (continued) Spreadsheet for the Statement of Cash Flows (continued) Dec.31 Changes Dec. 31 2015 Debits Credits 2016 Statement of Cash Flows Net income (1) 103 Adjustments for noncash effects: Depreciation expense (2) 50 Increase in accounts receivable (3) 46 Increase in prepaid insurance (4) 4 Increase in inventory (5) 110 Decrease in accounts payable (6) 13 Decrease in accrued expenses (7) 5 Net cash flows (25) Investing activities: Purchase of equipment (8) 230 Sale of equipment (9) 9 Net cash flows (221) Financing activities: Issuance of note payable (10) 50 Issuance of bonds payable (11) 160 Payment of cash dividends (12) 50 Net cash flows 160 Net decrease in cash (13) 86 (86) Totals 1,087 1,087