A comparative balance sheet for CKCH Corporation as of December 31, 2019 and 2018, is given below.

INSTRUCTIONS
Use these data to prepare a statement of cash flows for 2019. Additional information for the year follows:
a. Had net income of $15,100.
b. Paid $20,000 cash for new store equipment.
c. Sold used machinery for $8,000 cash. The original cost was $30,000, and the accumulated depreciation was $24,000; included the gain of $2,000 in net income.
d. Paid cash dividends of $5,000.
e. Recorded $15,000 in depreciation.

Analyze: List the transactions that required the greatest outlay of cash during fiscal 2019.

Transcribed Image Text:

СКСH Coгрoгation Comparative Balance Sheet December 31, 2019 and 2018 Assets 2019 2018 Cash 53600 84000 46000 140000 36000 287600 49500 60000 34000 150000 45000 248500 Accounts Receivable (Net) Merchandise Inventory Property, Plant, and Equipment Less Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Liabilities Accounts Payable 50000 50000 4 6000 |46000 Total Liabilities Stockholders' Equity Common Stock, ($1 par, 500,000 shares authorized: 50,000 shares issued in 2018 and 75,000 shares issued in 2019) Retained Earnings 75000 162600 |237600 237600 5000 0 152500 202500 248500 Total Stockholders' Equity Total Liabilities and Stockholders' Equity