Question: The income statement and additional data of Specialized Services Inc

The income statement and additional data of Specialized Services, Inc. follow:
Additional data follow:
a. Acquisition of plant assets totaled $116,000. Of this amount, $101,000 was paid in cash and a $15,000 note payable was signed for the remainder.
b. Proceeds from sale of land totaled $24,000. No gain was recognized on the sale.
c. Proceeds from issuance of common shares totaled $30,000.
d. Payment of long-term note payable was $15,000.
e. Payment of dividends was $11,000.
f. Data from the comparative balance sheet follow:
1. Prepare Specialized Services’ cash flow statement for the year ended June 30, 2014, using the indirect method.
2. Evaluate Specialized Services’ cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

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  • CreatedJuly 08, 2015
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