A comparative balance sheet for Cort Corporation as of December 31, 2016 and 2015, is given data shown below.

INSTRUCTIONS
Use these data to prepare a statement of cash flows for 2016. Additional information for the year follows:
a. Had net income of $15,100.
b. Paid $20,000 cash for new store equipment.
c. Sold used machinery for $8,000 cash. The original cost was $30,000, and the accumulated depreciation was $24,000; included the gain of $2,000 in net income.
d. Paid cash dividends of $5,000.
e. Recorded $15,000 in depreciation.
Analyze:
List the transactions that required the greatest outlay of cash during fiscal 2016.

Transcribed Image Text:

Cort Corporation Comparative Balance Sheet December 31, 2016 and 2015 Assets 2016 2015 Cash 53600 8 4000 46000 140000 6000 287600 4 91500 6010100 3 400 0 50000 4500 0 2 485 00 Property Plant, and Equipment Total Assets Liabilities and Stockholders' Equrity Liobilities Accounts Payable 50000 50000 46000 4 6000 Total Liabiltities Stockholders Equity Common Stock, ($1 par, 50,000 shares authorized: 50,000 shares issued in 2015 and 75,000 shares issued in 2016) Retained Earnings 50000 Total Stockholders Equity Total Liabities and Stockholders Equity 237600 2 485 00