Ashley Limited, which follows ASPE, had the following information available at the end of 2014: Note 1:

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Ashley Limited, which follows ASPE, had the following information available at the end of 2014:

Ashley Limited, which follows ASPE, had the following information available

Note 1: Investment income for the trading investments (FV-NI) includes dividend income of $2,400 and a gain on sale of $4,000 from investments at FV-NI.
Instructions
(a) Prepare a statement of cash flows for Ashley Limited using the direct method, accompanied by all required disclosures and a schedule that reconciles net income to cash flow from operations.
(b) Does Ashley Limited have any options available for the classification of interest and dividends paid or received?
(c) Prepare a memo for top management that summarizes and comments on the cash activities of Ashley in 2014.
(d) Management wants to provide more captions (headings) in the section for cash flow from operating activities.
Recommend one additional caption that would help achieve this goal.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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