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Comparative balance sheets for Byron Manufacturing as of December 31, 20Y8 and 20Y7 are shown. Complete the Changes column to determine net cash flows during the year.

Additional information needed to prepare the statement of cash flows using the indirect method:

1. Net income was $2,790
2. Byron paid $20,850 in cash dividends
3. Byron issued $54,610 in bonds payable for cash
4. Byron retired $99,610 in bonds with cash
5. No fixed assets were sold or disposed of during the period

Now prepare the statement of cash flows for Byron Manufacturing using the indirect method. Select Increase or Decrease and enter the amounts.

Now you can prepare the Statement of Cash Flows using the indirect method. Fill in the Statement based on the spreadsheet. Select Increase or Decrease and enter the amounts.

The major causes of differences between Byron Manufacturings net income and net cash from operating activities are the noncash_________ and the ______ (showing that the company paid for fewer expenses than were expensed on the income statement).

Byron Manufacturing Balance Sheets As of December 31, 2048 and 2017 Assets 2048 2017 Current assets: Cash 5,360 9,240 Accounts receivable 10,690 9,070 Inventory 19,890 18,510 Total current assets 35,940 36,820 Property, plant, and equipment Building 493,000 493,000 Equipment 278,000 270,400 771,000 763,400 Accumulated depreciation (147,200) (120,800) Net property, plant, and equipment 623,800 642,600 Total assets 659,740 679,420 Liabilities and Equity Current liabilities: Accounts payable 55,470 36,060 Salaries payable 9,390 11,790 Income taxes payable 1,230 9,860 Total current liabilities 66,090 57,710 Long-term liabilities: Bonds payable 350,000 395,000 Equity: Common stock 181,000 146,000 Retained earnings 62,650 80,710 Total equity 243,650 226,710 Total liabilities and equity 659,740 679,420 Byron Manufacturing Spreadsheet to Prepare the Statement of Cash Flows For the Year Ended December 31, 20Y8 Beginning Increase/Decrease Balance Sheet Accounts Balance Debit Credit Ending Balance Cash (m) Accounts receivable 9,070 (h) 1,620 10,690 Inventory (0) 0 19,890 Building 493,000 18,510 493,000 270,400 120,800 Equipment (6) 278,000 Accumulated depreciation 147,200 55,470 Accounts payable 19,410 (1) Salaries payable 36,060 11,790 9,860 9,390 (k) (1) Income taxes payable 8,630 1,230 Bonds payable 395,000 350,000 Common stock 35,000 146,000 80,710 (d) (0) (a) 181,000 62,650 Retained earnings (9) D Increase/Decrease in Cash Debit Credit Statement of Cash Flows Cash flow from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities Depreciation expense Increase in accounts receivable 1,620 (h) Increase in inventory Increase in accounts payable 19,410 Decrease in salaries payable Decrease in income taxes 8,630 (1) payable Cash flows from investing activities Purchase equipment Cash flows from financing activities Issued bonds payable Retired bonds payable Issued common stock () 35,000 Paid dividend (9) Net increase (decrease) in cash 284,180 284,180 Byron Manufacturing Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Increase in accounts receivable (1,620) Increase in inventory Increase in accounts payable 19,410 Decrease in salaries payable Decrease in income taxes payable (8,630) 31,780 $ 34,570 Net cash provided by operating activities Cash flows from investing activities: $ (7,600) Purchase of equipment Net cash used for investing activities (7,600) Cash flows from financing activities: Proceeds from issuance of bonds payable Retired bonds payable (99,610) Issued common stock (20,850) (30,850) Payment of dividends Net cash used for financing activities Net increase (decrease) in cash Cash, 1/1/20Y8 Cash, 12/31/20Y8

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