Data for Cheng Inc. are presented in P17-9A. Further analysis reveals that accounts payable pertain to merchandise

Question:

Data for Cheng Inc. are presented in P17-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.

In p17-9A, Condensed financial data of Cheng Inc. follow.

CHENG INC. Comparative Balance Sheets December 31 Assets 2014 2013 $ 80,800 92,800 $ 48,400 33,000 102,850 26,000 114,00


Additional information:

1. New equipment costing $85,000 was purchased for cash during the year.

2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.

3. Bonds matured and were paid off at face value for cash.

4. A cash dividend of $40,350 was declared and paid during the year.


Instructions

Prepare a statement of cash flows for Cheng Inc. using the direct method.


Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For  answer-question

Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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