Information from the balance sheet and statement of income are given below for North Road Inc., a company following ASPE, for the year ended December 31.
Additional information:
1. Investments in land were sold at cost during 2011.
2. Equipment costing $56,000 was sold for $15,550, resulting in a gain.
3. Common shares were issued in exchange for some equipment during the year. No other shares were issued.
4. The remaining purchases of equipment were paid for in cash.
(a) Prepare a cash flow statement for the year ended December 31, 2011, using the indirect method.
(b) Prepare the operating activities section of the cash flow statement using the direct method.
(c) Does North Road Inc. have a choice in how it classifies dividends paid on the statement of cash flows?

  • CreatedAugust 23, 2015
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