A comparative statement of financial position for Carmichael Industries Inc. follows: Additional information: 1. Net income for
Question:
A comparative statement of financial position for Carmichael Industries Inc. follows:
Additional information:
1. Net income for the fiscal year ending December 31, 2020, was $129,000.
2. Cash dividends of $60,000 were declared and paid. Dividends paid are treated as financing activities.
3. Bonds payable amounting to $50,000 were retired through issuance of common shares.
4. Land was sold at a gain of $5,000.
5. No equipment was sold during the year.
Instructions
a. Prepare a statement of cash flows using the indirect method along with any necessary note disclosure.
b. Comment in general on the results reported in the statement of cash flows.
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy