Statement of Cash Flows The following is a list of items for Witts Companys 2016 statement of
Question:
a. Receipt from sale of equipment, $2,700
b. Increase in inventory, $3,900
c. Net income, $13,500
d. Payment for purchase of building, $29,000
e. Depreciation expense, $8,700
f. Receipt from Issuance of bonds, $8,000
g. Increase in prepaid expenses, $800
h. Loss on sale of equipment, $2,200
i. Payment of dividends, $5,200
j. Decrease in accounts receivable, $1,700
k. Issuance of common stock for land, $6,900
1. Decrease in accounts payable, $1,500
m. Beginning cash balance, $10,200
Required:
1. Prepare the statement of cash flows.
2. Next Level Under IFRS, what alternative treatment of the payment of dividends is allowed? How would this affect the statement of cash flows?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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