The comparative balance sheet of Southern Bell Company at March 31, 20X9, reported the following 31 /3/20X $4,000 Current Assets: 31/3/X9 $6,200 Cash and cash equivalents Accounts receivable 21,700 14,900 63,200 Inventories 60,600 Current Liabilities: $27,600 $30,100 Accounts payable Accrued liabilities 11,100 4,700 10,700 Income taxes payable 8,000 Southern Bell's transactions during the year ended March 31, 20X9 included the following: Payment of cash dividend Purchase of equipment $30,000 78,700 Issuance of long-term note payable to borrow cash Depreciation expense Purchase of building 50,000 17,300 47,000 Net income 70,000 11,000 Issuance of common stock Acquisition of land by issuing L-T Note Payable 95,000 Required: Prepare Southern Bell's statement of cash flows for the year ended March 31, 20 X 9, using the indirect method.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).