1. Purchase investment in bonds for $96,000. 2. Sell land costing $21,000 for only $13,900, resulting...

 

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1. Purchase investment in bonds for $96,000. 2. Sell land costing $21,000 for only $13,900, resulting in a $7,100 loss on sale of land. 3. Purchase $51,000 in equipment by issuing a $51,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $20,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) 1. Purchase investment in bonds for $96,000. 2. Sell land costing $21,000 for only $13,900, resulting in a $7,100 loss on sale of land. 3. Purchase $51,000 in equipment by issuing a $51,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $20,500. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)

Answer rating: 100% (QA)

ANSWER To prepare the statement of cash flows using the indirect method we need to analyze each tran... View the full answer