Question

Tuit Inc., a greeting card company that follows ASPE, had the following statements prepared as of December 31, 2012:
Additional information:
1. Dividends on common shares in the amount of $6,000 were declared and paid during 2012.
2. Depreciation expense is included in operating expenses, as are salaries and wages expense of $69,000.
3. Equipment with a cost of $20,000 that was 70% depreciated was sold during 2012.
Instructions
(a) Prepare a statement of cash flows using the direct method.
(b) Prepare a statement of cash flows using the indirect method.
(c) Does Tuit Inc. have any options on how to classify interest and dividends paid on the statement of cash flows?


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  • CreatedAugust 23, 2015
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