Burrow Mining Inc.’s comparative balance sheet information at December 31, 2014 and 2013, and its income statement for the year ended December 31, 2014, are as follows:
During 2014, the following transactions occurred: 1. Issued $14,000 of bonds payable at face value. 2. Sold the long-term investment on January 1, 2014, for $16,800. 3. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation. 4. Purchased equipment for $11,200 cash.
Required a. How much was paid in dividends during 2014? b. Prepare a statement of cash flows for Burrow Mining Inc. for the year ended December 31, 2014, using the indirect method. Analysis Component: Accounts Receivable increased from $21,840 to $51,520 in 2014. What transactions cause this account to change? Accounts Payable decreased during 2014. What causes this account tochange?