The following information is provided for the Loofa Corporation. During 2015, the following occurred: 1. Net income
Question:
During 2015, the following occurred:
1. Net income was $54,610.
2. Equipment was purchased for cash, and no equipment was sold.
3. Shares were sold for cash.
4. Dividends were declared and paid.
a. Prepare a statement of cash flows for the Loofa Corporation.
b. Identify the major accounts contributing to the change in cash position, from the three different components of the cash flow statement.
Transcribed Image Text:
Balance Sheets December 31, 2015 December 31, 2014 Assets $ 57,345 $ 21,845 Cash .. ... Accounts receivable.... 43,690 49,150 114,685 Inventory... 98,300 Equipment 101,035 81,920 Less: accumulated amortization... Net equipment.. 24,575 16,385 76,460 65,535 Total assets.... $234,830 $292,180 Liabilities and Equity Accounts payable..... Taxes payable $ 46,420 $ 27,305 5,465 10,920 163,835 Common stock 180,220 Retained earnings.... 60,075 32,770 $234,830 . Total liabilities and equity. .. $292,180
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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