Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2016. Use the indirect method for the operating activities section of the statement.
Information:
Net income for the year 2016 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000, and accounts payable decreased $7,000. Depreciation expense included in net income was $8,000.
During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank. Dividends of $6,000 were paid in cash. Preferred stock was issued to retire $7,000 of long-term notes payable.
The beginning cash balance was $22,000 and the ending balance was $32,000.

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The Answer of Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2016. Use the indirect method for the operating activities section of the statement.
Information:
Net income for the year 2016 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000, and accounts payable decreased $7,000. Depreciation expense included in net income was $8,000.
During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank. Dividends of $6,000 were paid in cash. Preferred stock was issued to retire $7,000 of long-term notes payable.
The beginning cash balance was $22,000 and the ending balance was $32,000.

Use the Following Information to Prepare a Statement of Cash