Question

The following is a list of the items to be included in the preparation of Warrick Company's 2016 statement of cash flow's:
a. Net income, $59,200
b. Payment for purchase of building, $98,000
c. Increase in accounts receivable, $7,400
d. Proceeds from issuance of common stock, $37,100
e. Increase in accounts payable, $4,500
f. Proceeds from sale of land, $7,000
g. Depreciation expense, $12,600
h. Payment of dividends, $36,000
i. Gain on sale of land, $5,300
j. Decrease in inventor)', $3,700
k. Payment for purchase of long term investments, $9,600
l. Amortization of discount on bonds payable, $1,900
m. Proceeds from issuance of note, $18,000
n. Increase in deferred taxes payable, $5,000
o. Equipment acquired by capital lease, $ 19,500
p. Decrease in salaries payable, $2,300
q. Beginning cash balance, $20,300
Required:
1. Prepare the statement of cash flows.
2. Assume the company’s preferred stock has been selling for $ 120 per share during 2016. How many shares would the company have had to issue to avoid having a decrease in cash during the year? Where would this issuance have been reported in the statement of cash flow s?


$1.99
Sales4
Views59
Comments0
  • CreatedOctober 05, 2015
  • Files Included
Post your question
5000