The income statement and additional data of Nyman Travel Products, Inc., follow: Additional data: a. Acquisition of
Question:
Additional data:
a. Acquisition of plant assets was $134,000. Of this amount, $90,000 was paid in cash and $44,000 by signing a note payable.
b. Proceeds from sale of land totaled $34,000.
c. Proceeds from issuance of common stock totaled $60,000.
d. Payment of long-term note payable was $14,000.
e. Payment of dividends was $12,000.
f. From the balance sheets:
Requirements
1. Prepare Nyman's statement of cash flows for the year ended December 31, 2016, using the indirect method.
2. Evaluate Nyman's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz