The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,300 b. proceeds from sale of land, $5,500 c. payment of dividends, $5,000 d. net income, $8,000 e. conversion of bonds to common stock, $7,000 k. ending cash balance, $14,000 f. increase in accounts payable, $3,000 Required: I Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. LOMBARDO COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income ✓ Adjustment for noncash income items: Add: Depreciation expense ✓ g. proceeds from issuance of note, $6,100 h. gain on sale of land, $1,900 i. payment for purchase of building, $13,000 j. increase in accounts receivable, $2,800 Less: Gain on sale of land Adjustments for cash flow effects from working capital items: 8,000 4,300 -1,900 0.000 1

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Statement of Cash Flows
The following is a list of the items for Lombardo Company's 2019 statement of cash flows:
a. depreciation expense, $4,300
b. proceeds from sale of land, $5,500
c. payment of dividends, $5,000
d. net income, $8,000
e. conversion of bonds to common stock, $7,000
f. increase in accounts payable, $3,000
Required:
Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.
LOMBARDO COMPANY
Statement of Cash Flows
For Year Ended December 31, 2019
Operating Activities:
Net income
Adjustment for noncash income items:
Add: Depreciation expense
Less: Gain on sale of land
Adjustments for cash flow effects
from working capital items:
g. proceeds from issuance of note, $6,100
h. gain on sale of land, $1,900
i. payment for purchase of building, $13,000
j. increase in accounts receivable, $2,800
k. ending cash balance, $14,000
Tunne
8,000
4,300
-1,900
0.000
✓
Transcribed Image Text:Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,300 b. proceeds from sale of land, $5,500 c. payment of dividends, $5,000 d. net income, $8,000 e. conversion of bonds to common stock, $7,000 f. increase in accounts payable, $3,000 Required: Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments. LOMBARDO COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense Less: Gain on sale of land Adjustments for cash flow effects from working capital items: g. proceeds from issuance of note, $6,100 h. gain on sale of land, $1,900 i. payment for purchase of building, $13,000 j. increase in accounts receivable, $2,800 k. ending cash balance, $14,000 Tunne 8,000 4,300 -1,900 0.000 ✓
from working capital items:
Increase in accounts receivable
Increase in accounts payable
Net cash provided by operating activities
Investing Activities:
Proceeds from sale of land
Payment for purchase of building
Net cash used for investing activities
Financing Activities:
Payment of dividends
Proceeds from issuance of note
Net cash provided by financing activities
Cash, January 1, 2019
Cash, December 31, 2019
Investing and Financing Activities Not Affecting Cash
Financing Activities:
Conversion of bonds to preferred stock
Issuance of bonds to convert common stock
X
X
-2,800
3,000
-13,000 X
5,500 X
-5,000
6,100
10,600
-7,500✔
3005
1,100 ✔
6,100 X
1,100 X
4,200
9,800 X
14,000 X
Transcribed Image Text:from working capital items: Increase in accounts receivable Increase in accounts payable Net cash provided by operating activities Investing Activities: Proceeds from sale of land Payment for purchase of building Net cash used for investing activities Financing Activities: Payment of dividends Proceeds from issuance of note Net cash provided by financing activities Cash, January 1, 2019 Cash, December 31, 2019 Investing and Financing Activities Not Affecting Cash Financing Activities: Conversion of bonds to preferred stock Issuance of bonds to convert common stock X X -2,800 3,000 -13,000 X 5,500 X -5,000 6,100 10,600 -7,500✔ 3005 1,100 ✔ 6,100 X 1,100 X 4,200 9,800 X 14,000 X
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