- Access to 2 Million+ Textbook solutions
- Ask any question from 24/7 available
Tutors
The following additional information is available for the year 2008:
a. The company sold long-term investments with an original cost of $30,000 for $50,000 during the year.
b. Equipment that had cost $90,000 and on which there was $40,000 in accumulated depreciation was sold during the year for $44,000.
c. Cash dividends totaling $28,000 were declared and paid during the year.
d. The stock of a dissident stockholder was repurchased for cash and retired during the year. No issues of stock were made.
Required:
1. Using the indirect method, compute the net cash provided by operating activities for 2008.
2. Using the data from (1) above and other data from the problem as needed, prepare a statement of cash flows for 2008.
3. Explain the major reasons for the decline in the companys cashbalance.
Members
OR
Non-Members