Nolan Co.

Statement of Cash Flows – Indirect Method

For the Year Ended December 31, 2012
Cash Flows from Operating Activities
Net Income $ 285,000
Adjustment to reconcile net income to net cash provided by
operating activities:
Depreciation Expense - Equipment $ 34,250
Amortization Expense 3,200
Loss on Sale of Equipment 6,380
Gain on Sale of Land (38,000)
Decrease in Prepaid Rent 5,000
Increase in Prepaid Advertising (2,250)
Increase in Merchandise Inventory (31,250)
Increase in Accounts Receivable (20,000)
Decrease in Accounts Payable (22,500)
Decrease in Interest Payable (2,500)
Increase in Utilities Payable 5,750 (61,920)
Net cash provided by operating activities 223,080
Cash Flows from Investing Activities
Sale of Land 133,000
Sale of Equipment 25,520
Purchase of Land (136,400)
Purchase of Equipment (91,600)
Net cash used by investing activities (69,480)
Cash Flows from Financing Activities
Issuance of Ordinary Shares 110,000
Receive from Bank Loan 30,000
Payment of Dividends (128,800)
Net cash provided by financing activities 11,200
Net decrease in cash 164,800
Cash at beginning of period 303,100
Cash at end of period $ 467,900