Travis Engineering presented the following comparative balance sheet: Additional information about transactions and events occurring in 20X3
Question:
Travis Engineering presented the following comparative balance sheet:
Additional information about transactions and events occurring in 20X3 is as follows:
Dividends of \($105\),700 were declared and paid.
Accounts payable and accounts receivable relate solely to purchases and sales of inventory.
The increase in land resulted from the purchase of land via issuance of the long-term note payable.
No buildings were purchased or sold. Equipment was purchased.
In January of 20X3, equipment with an original cost of \($75\),000 was sold for \($50\),000.
The increase in paid-in capital all resulted from issuing additional shares for cash.
The income statement for the year ending 20X3 follows:
Prepare Travis Engineering's statement of cash flows for the year ending 20X3. Use the direct approach, and prepare the supplement reconciliation of net income to operating cash flows.
Step by Step Answer: