NITSU Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows

Question:

NITSU Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2011: cash collections from sales, $280,000; cash expended for operating expenses, $175,000; sale of unissued NITSU stock for cash, $30,000; cash dividends declared and paid to stockholders during the year, $18,000; and payments on long-term notes payable, $80,000. During the year, a tract of land held as an investment was sold for $10,000 cash (which was the same price that NITSU had paid for the land in 2010), and $48,000 cash was expended for two new machines. The machines were used in the factory. The beginning-of-the-year cash balance was $63,000.

Required:
Prepare the statement of cash flows for 2011. Follow the format illustrated in the chapter.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: