Problem - The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively. Its current accounts on its comparative balance sheet showed the following:
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December 31
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20X4
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20X5
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Cash
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$10,000
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$12,000
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Marketable Securities
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25,000
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27,000
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Accounts Receivable
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45,000
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40,000
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Inventory
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15,000
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17,000
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Prepaid Expense
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10,000
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8,000
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Accounts Payable
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25,000
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30,000
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Accrued Payroll
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8,000
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10,000
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Income Taxes Payable
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10,000
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8,000
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Current Maturities of Long-Term Debt
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15,000
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18,000
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Dividends Payable
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5,000
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8,000
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In addition, sales of equipment, marketable securities, and investments during 20X5 were as follows:
1. Equipment that cost $20,000 with accumulated depreciation of $12,000 was sold for $5,000.
2. Investments that cost $20,000 were sold for $25,000.
3. Marketable securities that cost $10,000 were sold for $8,000. Required:
Required - Prepare a schedule of cash flows from operating activities for 20X4.