Burrow Mining Inc.’s comparative balance sheet information at December 31, 2014 and 2013, and its income statement for the year ended December 31, 2014, are as follows:

During 2014, the following transactions occurred:
1. Issued $14,000 of bonds payable at face value.
2. Sold the long-term investment on January 1, 2014, for $16,800.
3. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation.
4. Purchased equipment for $11,200 cash.

a. How much was paid in dividends during 2014?
b. Prepare a statement of cash flows for Burrow Mining Inc. for the year ended December 31, 2014, using the indirect method.
Analysis Component: Accounts Receivable increased from $21,840 to $51,520 in 2014. What transactions cause this account to change? Accounts Payable decreased during 2014. What causes this account tochange?

  • CreatedJanuary 08, 2015
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