(a) Syres Corporation Statement of Cash Flows- Indirect Method For The Year Ended December 31, 2009

Cash Flow from Operating Activities:

Net Income

42000

Adjustment to reconcile net income to net cash provided by operational activities:

Depreciation Expense Increase in Accounts Receivable Increase in Inventories Decrease in Prepaid Expense Decrease in Accounts Payable Loss on Sale of Equipment Net Cash Provided by Operating Activities

14000 (7000) (13000) 5000 (4000) 2000 (3000) 39000 10000 (16000) (6000)

Cash Flow from Investing Activities:

Sale of Equipment Purchase of Land Net Cash from Investing Activities

(15000) (15000) 18000 40000 58000

Cash Flow from Financial Activities:

Payment of Cash Dividends Net Cash from Financial Activities Net Increase in Cash (+) Beginning Cash Balance Ending Cash Balance

(B) Syres Corporation Statement of Cash Flows- Direct Method For The Year Ended December 31, 2009 $ Cash Flows from Operating Activities:
Cash receipts from customers ( W- 1)

401000 136000 19000 207000 (362000) 39000

Cash Payments:
For operating expenses ( W- 2) For income taxes To Suppliers ( W- 3) Net Cash Provided by Operating Activities

Cash Flows from Investing Activities:

Sale of Equipment Purchase of Land Net Cash Provided by investing activities

10000 (16000) (6000)

Cash Flow from Financial Activities:

Payment of cash dividend ( W- 4) Net Cash from Financial Activities Net Increase in Cash (+) Beginning Cash Balance Ending Cash Balance

(15000) (15000) 18000 40000 58000

Workings ( W- 1) : $
Sales (-) Increase in Accounts Receivable Cash Receipts from Customers 408000 (7000) 401000

( W- 2) : $
Operating Expenses (-) Decrease in Prepaid Expenses Cash Paid for Operating Expenses 141000 (5000) 136000

( W- 3) : $
Cost of Goods Sold (+) Increase in Inventory Cost of Purchase (+) Decrease in Accounts Payable Cash Paid to Suppliers 190000 13000 203000 4000 207000

( W- 4)
Cash Dividends: Net Income Increase in Retained Earnings $42000 - $ (90000 = $15000

- 63000)