Proceeds from sale of long-term investment 14077


Problem - Following are the line items included in the 2009 statement of cash flows prepared by The Nine Muses, Inc. (amounts are in thousands):

Proceeds from sale of long-term investment $14,077

Depreciation expenses 8,275

Increase in accounts receivable 2,396

Increase in accounts payable 6,590

Purchase of long-term investment 29,939

Net income 22,214

Increased in accrued salaries 4,072

Proceeds from sale of property and equipment 2,468

Increase in inventories 7,320

Issuance of long-term notes 126

Reduction of long-term debt 572

Gain on disposal of long-term assets 415

Issuance of common stock 10,000

Cash and cash equivalent, beginning of the year 21,750

Increase in income taxes payable 5,608

Acquisition of property and equipment 31,083

Net increase (decrease) in cash and cash equivalents ?

Cash and cash equivalents, end of year ?

Required: Prepare The Nine Muse's statement of cash flows using the indirect method.

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Accounting Basics: Proceeds from sale of long-term investment 14077
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