Ludwig Corporation for the year 2007 Use the indirect method. To determine the cash flow from operation/investing/financing Accounts 2007 2006 Cash 35 15 Accounts Receivable 75 50 Machinery 40 25 Building 325 300 Accumulated Depreciation (125) (100) Land 65 60 Accounts Payable 45 40 Bonds Payayble 110 100 Common Stock 220 190 Retained Earnings 40 20 Additional Information -The building was remodeled near the end of the year -Dividends for the year 2006 were 20 -Retained earnings was affected only by net income and dividends
a quick run down shows CFO=+45, but I could be wrong.
CFO is 45!
Cash from operations: +45 Cash from investing: -45 Cash from financing: +20