Acc302 Intermediate Accounting: E22-10 The 2010 statement of cash flows for the Andell Company

Acc302 Intermediate Accounting 
E22-10 Erroneous Statement of Cash Flows 
The 2010 statement of cash flows for the Andell Company, as developed by its bookkeeper, is shown here: 
Cash Flows Statement 
December 31, 2010 
Inflows of Cash 
Operating Activities 
Net income 10,600 
Add: Proceeds from sale of equipment 4,400 
Proceeds from issuance of stock 4,300 
Less: Payment for investment in bonds (6,000) 
Payment of long-term note (5,000) 
Net cash inflows from operations 8,300 

Balance Sheet 
January 1, 2010 
Cash 900 Accounts payable 1,600 
Accounts receivable 2,300 Notes payable 3,900 
Land 4,900 Common stock, $5 par 4,500 
Equipment 20,000 Additional paid-in capital 1,800 
Less: Accumulated depreciation (9,100) 10,900 Retained earnings 7,200 
Total Assets 19,000 Total Liabilities and Stockholders’ Equity 19,000 

Other Inflows 
Decrease in accounts receivable 2,100 
Depreciation expense 4,800 
Total other inflows of cash 6,900 
Total inflows of cash 15,200 
Outflows of Cash 
Payment for purchase of land (5,200) 
Decrease in accounts payable (2,800) 
Payment of dividends (3,000) 
Gain on sale of equipment (700) 
Total outflows of cash (11,700) 
Net Increase in Cash 3,500 
Cash, December 31, 2010 11,700 
Cash, January 1, 2010 8,200 
You determine that the amounts of the items listed on the statement are correct, but in certain circumstances, incorrectly classified. 

Prepare a corrected 2010 statement of cash flows for the Andell Company
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