Condensed financial data of Oakley Company appear below. Additional information: 1. Equipment costing $97,000 was purchased for

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Condensed financial data of Oakley Company appear below.

Oakley Company Comparative Balance Sheets December 31 Assets 2020 2019 $ 47,250 $ 82,700 Cash Accounts receivable 90,800

Liabilities and Stockholders’ Equity 2020 2019 $ 57,700 $ 48,280 Accounts payable Accrued expenses payable Bonds payab

Additional information:
1. Equipment costing $97,000 was purchased for cash during the year.
2. Investments were sold at cost.
3. Equipment costing $47,000 was sold for $15,550, resulting in gain of $8,750.
4. A cash dividend of $83,400 was declared and paid during the year.


Instructions
Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns, using letters to cross-reference each entry.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Accounting Principles

ISBN: 978-1119411482

13th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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