Posted: April 16th, 2016

What is gain on Sale of Investments?

Posner Company
Statement of Cash Flows – Indirect Method
For the Year Ended December 31, 2011

Cash flows from Operating Activities
Net Income $129,000
Adjustments to reconcile net income to net
cash flow from operating activities:
Depreciation $26,000 ?
Gain on Sale of Investments (4,000) ?
Changes in current operating assets and liabilities:
Decrease in Accounts Receivable 11,000
Increase in Inventory (8,500)
Increase in Accounts Payable 18,700
Net cash Flow from Operating Activities 172,200
Cash Flows from Investing Activities
Investments (66,000) ?
Equipment Purchase (243,200) ?
Net Cash Flow for Investing Activities (309,200)
Cash Flows from Financing Activities
Bonds Payable 100,000
Common Stock Issuance 65,000
Dividends Paid (25,000)
Net cash Flow used for Financing Activities 140,000
Increase in Cash 3,000
Cash at the beginning of the year 50,000
Cash at the end of the year 53,000