Data for Granger Inc. are presented in P13.9. Further analysis reveals that accounts payable pertain to merchandise
Question:
Data for Granger Inc. are presented in P13.9. Further analysis reveals that accounts payable pertain to merchandise creditors.
Instructions
Prepare a statement of cash flows for Granger Inc. using the direct method.
P13.9
Condensed financial data of Granger Inc. follow.
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
5. Common stock was issued at par for cash.
6. There were no significant noncash transactions.
Instructions
Prepare a statement of cash flows using the indirect method.
Step by Step Answer:
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119754053
9th Edition
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell