Kennedy, Inc ​
Prepare the Cash Flows from Operating Activities Section of income

question 5

Essay

Kennedy, Inc. reported the following data: $\begin{array}{|l|r|}\hline \text { Net income } & \$ 118,000 \\\hline \text { Depreciation expense } & 15,000 \\\hline \text { Loss on disposal of equipment } & (10,000) \\\hline \text { Gain on sale of building } & 20,000 \\\hline \text { Increase in accounts receivable } & 7,000 \\\hline \text { Decrease in accounts payable } & (2,000) \\\hline\end{array}$ ​
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

---

Definitions:

Stock Price

The monetary value at which a company’s stock is traded on the market, influenced by factors like company performance and market conditions.

Premium

The amount by which the price of a bond or other security exceeds its principal amount or face value.

American Put Option

An American put option is a financial derivative that gives the holder the right, but not the obligation, to sell a specified quantity of an asset at a predetermined price before or on the option's expiration date.

Underlying Asset

The fundamental asset upon which financial derivatives and instruments, such as options and futures, are structured and valued.