Indirect

KM Manufacturing Company
Statement of Cash Flow
For the Year Ended December 31, 2X20
Net Income 430,000
Adjustment provided by Operating
 
activities:
Depreciation Expense 880,000  
Loss on disposal of
24,000  
equipment
Increase in accounts
-165,000  
receivable
Decrease in inventory 33,000  
Increase in accounts payable 20,000  
Net Cash provided by Operating
792,000
activities
   
Cash flow from Investing Activities  
Sale of Equipment 270,000  
Purchase of Equipment -750,000  
Net Cash Used in Invensting
-480,000
Activities
   
Cash flow from financing activities  
payment of dividends -200,000  
Net Cash used by financing
-200,000
activities
Net increase in Cash 542,000
Cash balance, beginning 130,000
Cash balance, end   672,000
 KM Manufacturing Company
Statement of Cash Flow
For the Year Ended December 31, 2X20
Cash Flows from Operating
activities  
Sales revenue 6,583,000  
Increase in accounts receivable -165,000  
Other operating expense -2,086,000  
Income Tax expense -353,000  
Cost of Goods Sold -2,810,000  
Decrease in inventory 33,000  
Increase in accounts payable 20,000  
Net Cash Provided by
1,222,000
Operating Activities
   
Cash Flow from Investing activities  
Sale of Equipment 270,000  
Purchase of Equipment -750,000  
Net Cash Used in Invensting
-480,000
Activities
   
Cash Flow from Financing activities  
Payment of dividends -200,000  
Net Cash Used in Financing
-200,000
Activities
Net Increase in Cash 542,000
Cash balance, beginning 130,000
Cash balance, end   672,000

Direct