Presented below are the comparative statements of financial position for Vernet Company at December 31. Vernet Company
Question:
Vernet Company
Comparative Statements of Financial Position
December 31
Equity and Liabilities
Additional information:
1. Operating expenses include depreciation expense $57,000 and charges from prepaid expenses of $4,400.
2. Land was sold for cash at cost for $35,000
3. Cash dividends of $82,940 were paid.
4. Net income for 2014 was $50,000.
5. Equipment was purchased for $80,000 cash. In addition, equipment costing $40,000 with a book value of $31,000 was sold for $37,000 cash.
6. Issued 25,000 ordinary shares with a $1 par value for land with a fair value of $25,000.
Instructions
Cash from operations $75,400 Prepare a statement of cash flows for 2014 using the indirect method.
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Financial Accounting IFRS
ISBN: 978-1118285909
2nd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso