Cash Flow Preparation

Cash Flow Preparation
27. Crosby Corporation
Statement of Cash Flows
For the Year Ended December 31, 2008
Cash Flow from Operating Activities:
Net Income (Earnings after Taxes) $160,000
Adjustments to determine cash flow from operating activities:
Add back depreciation 150,000
Increase in accounts receivables (50,000)
Increase in inventory (20,000)
Decrease in prepaid expenses 20,000
Increase in accounts payable 190,000
Decrease in Accrued expenses (20,000)
Total Adjustments $270,000
Net cash flows from operating activities 430,000
Cash Flow from investment activities:
Decrease in investment 10,000
Increase in Plant and Equipment (400,000)
Net cash flow from investment activities (390,000)
Cash Flow from financing activities:
Increase in bonds payable 50,000
Preferred stock dividends paid