The following information is available for Ramos Corporation for the year ended December 31, 2014. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Solution Statement of Cash Flows Particulars Amount Amount Opening cash and Cash Equivalents        79,425.00 Cash Flow from Operating Activities Net income        501,437.00 Income Taxes Provision            8,296.00 Add : Depreciation        285,930.00 Less Increase in AR        (14,473.00) Less Increase in Inv        (19,415.00) Less : Decrease in Accounts payable          (6,531.00) Cash Flow from Operating Activities 755,244 Cash Flow from Investing Activities Sale of Land 61,775 Purchase of Building -510,085 Cash Flow from Investing Activities (448,310.00) Cash Flow from Financing Activities Purchase of treasury stock        (45,890.00) Issue of Bonds        353,000.00 Dividend Paid        (21,180.00) Cash Flow from Financing Activities     285,930.00 Closing cash and cash Equivalents     672,289.00 .

1. The following information is available for Ramos Corporation for the year ended December 31,
2014.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash
flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Beginning cash balance $ 79,425
Accounts payable decrease 6,531
Depreciation expense 285,930
Accounts receivable increase 14,473
Inventory increase 19,415
Net income 501,437
Cash received for sale of land at book value 61,775
Cash dividends paid 21,180
Income taxes payable increase 8,296
Cash used to purchase building 510,085
Cash used to purchase treasury stock 45,890
Cash received from issuing bonds 353,000
Solution
Statement of Cash Flows Particulars Amount Amount Opening cash and Cash Equivalents
79,425.00 Cash Flow from Operating Activities Net income 501,437.00 Income Taxes
Provision 8,296.00 Add : Depreciation 285,930.00 Less Increase in AR
(14,473.00) Less Increase in Inv (19,415.00) Less : Decrease in Accounts payable
(6,531.00) Cash Flow from Operating Activities 755,244 Cash Flow from Investing Activities
Sale of Land 61,775 Purchase of Building -510,085 Cash Flow from Investing Activities
(448,310.00) Cash Flow from Financing Activities Purchase of treasury stock (45,890.00)
Issue of Bonds 353,000.00 Dividend Paid (21,180.00) Cash Flow from Financing
Activities 285,930.00 Closing cash and cash Equivalents 672,289.00