The following information is provided for the Waif Corporation. During 2015, the following occurred: 1. Net income
Question:
During 2015, the following occurred:
1. Net income was $91,000.
2. Bonds were retired by issuing new common stock.
3. No equipment was sold.
4. Cash dividends were paid.
a. Prepare a statement of cash flows for the Waif 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, 2014 December 31, 2015 Assets Cash .... $ 54,500 $ 17,400 Accounts receivable. 64,800 52,200 Inventory.... 142,200 149,300 60,000 87,000 Land..... Plant and equipment 206,000 158,000 33,000 Less: Accum. amortization.. 55,000 Net plant and equipment. 151,000 $472,500 125,000 Total assets..... $430,900 Liabilities and Equity $ 27,000 $ 37,000 Accounts payable.. Bonds payable.... 118,000 158,000 Common stock 170,000 130,000 Retained earnings... 157,500 $472,500 105,900 $430,900 Total liabilities and shareholders' equity
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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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