The following is a list of the items to be
The following is a list of the items to be included in the preparation of Tronc LO 21.3 Company’s 2016 statement of cash flow's:
a. Ordinary gain, $9,200
b. Proceeds from issuance of note, $25,000
c. Decrease in accounts receivable, $5,000
d. Payment for purchase of patent, $ 19,800 c. increase in inventory', $6,700
f. Payment of dividends, $30,000
g. Decrease in accounts payable, $4,000
h. Proceeds from sale of investments, $8,500
i. Amortization of premium on bonds payable, $2,100
j. Net income, $49,200
k. Common stock exchanged for land, $ 14,000
l. Payment for purchase of equipment, $39,400
m. Loss on sale of investments, $4,800
n. Decrease in deferred taxes payable, $3,600
o. Proceeds from issuance of preferred stock, $52,800
p. Payment to retire bonds, $37,800
q. Depreciation expense, $10,700
r. Ending cash balance, $22,100
1. Prepare the statement of cash flow's.
2. What would have happened if the company had not issued the note during 2016? How did the issuance of the note affect the company’s debt ratio (discussed in Chapter 6) at the end of 2016?
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