Question

A comparative statement of financial position for Carmichael Industries Inc. follows:
Additional information:
1. Net income for the fiscal year ending December 31, 2014, was $ 129,000.
2. Cash dividends of $60,000 were declared and paid. Dividends paid are treated as financing activities.
3. Bonds payable amounting to $50,000 were retired through issuance of common shares.
4. Land was sold at its carrying amount.
5. No equipment was sold during the year.
Instructions
(a) Prepare a statement of cash flows using the indirect method for cash flows from operating activities.
(b) Comment in general on the results reported in the statement of cash flows.


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  • CreatedSeptember 18, 2015
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