Name: ______________________________

Activity #7 – Due on D2L Dropbox by Wednesday at 9am

ABC Co has requested you prepare their statement of cash flows using the indirect method for operating
cash flows for 2024. They have provided the following information:
12/31/24 12/31/23 Change
Cash $27,500 $ 7,000 $20,500
Accounts Receivable 18,000 17,000 1,000
Prepaid Insurance 6,000 8,000 (2,000)
Salaries Payable 5,000 8,000 (3,000)
Accounts Payable 13,000 10,500 2,500

 ABS’s net income for the period was $25,500.

 ABC issued bonds for $8,000.
 ABC’s depreciation expense was $7,500.
 ABC purchased stock in XYZ company for $4,000.
 ABC paid dividends to shareholders of $4,000.
 ABC made a principle payment on a note payable for $3,000.
 ABC purchased a delivery truck for their business for $10,000.

ABC Co
Statement of Cash Flows
For the year ended 12/31/24

Cash Flows from Operations (Indirect)

Net Cash Flow from Operations

Cash Flows from Investing Activities:

Net Cash Flow from Investing

Cash Flows from Financing Activities:

Net Cash Flow from Financing

Net Change in Cash
Beginning Cash Balance
Ending Cash Balance