A merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:

During the year, it sold a piece of equipment for $3000 that had originally cost $6000 and had accumulated depreciation of $4000. It reports net income of $2000 and paid dividends in the year. The company did not retire any bonds or repurchase any of its own common stock during the year. Prepare Statement Of Cash Flows.

Q2.

Using the indirect method, prepare a statement of cash flows for the year( enter your answer in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.)
 
 

Transcribed Image Text:

Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance Beginning Balance $ 48,000 $ 57,000 41,000 44,000 55,000 50,000 144,000 151,000 140,000 35.000 105,000 $256.000 150,000 50,000 100,000 $ 244,000 $32,000 25,000 60,000 70,000 57,000 $ 244,000 $ 57,000 28,000 50,000 60,000 61.000 $ 256,000 Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Ending Balance Beginning Balance $ 48,000 $ 57,000 41,000 44,000 55,000 50,000 144,000 151,000 140,000 35.000 105,000 $256.000 150,000 50,000 100,000 $ 244,000 $32,000 25,000 60,000 70,000 57,000 $ 244,000 $ 57,000 28,000 50,000 60,000 61.000 $ 256,000

Answer rating: 100% (QA)

Answer Total Assets Liquid Asses Household Assets Investment Assets Total Assets 3670 89... View the full answer