Green Leaf 'S Activities for the Year Ended December 31,2016

question 45

Essay

Green Leaf 's activities for the year ended December 31,2016 included the following:
• Comprehensive income totaled $538,000 including $88,000 in other comprehensive income.
• Paid a cash dividend of $80,000 that was declared in 2015.
• Interest expense for the year was $29,000; the opening and closing balances in the interest payable account were $26,000 and $17,000,respectively.
• Accounts receivable increased $33,000 and accounts payable decreased $24,000 during the year.
• The company paid $56,000 cash for equipment.
• The company sold held-to-maturity investments for $26,000.The book value of the investment was $27,000.
• Depreciation expense for the year totaled $19,000.
• Suffered an impairment loss on patents of $10,000.
• Declared and issued a 2-for-l stock split.There were 400,000 ordinary shares outstanding before the split with a collective market value of $100,000,000.
Requirement:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Credit

A bookkeeping record that raises either liabilities or equity or lowers an asset or expense.

Abbreviated

Refers to shortened or condensed forms of words, terms, or documents, often used to save space or time.

Revenue Accounts

Accounts used to record the income generated from a company's primary operations.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, signifying an amount owed to the account holder.