Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation expense $ 3 8 0 3 0
Increase in inventory ( 2 6 2 4 0 )
Increase in prepaid insurance ( 1 9 8 0 )
Increase in interest receivable ( 8 8 5 )
Net cash from operating activities
Cash flows from investing activities
Net increase in cash
Beginning cash balance
Ending cash balance
Noncash investing and financing activities
Purchase of land using common stock (note 2)
$ 236764
28304
265068
198218
39760
$ 237978
$ 54000
Rockford Corporation
Statement of Cash Flows
For the Year Ended December 31, 2014
Note 1. The increase in accounts payable is $90,248; however $5,500 of this related to the purchase of the computer
and only $84,748 related to operations.