The income statement and additional data of Casey Travel Products, Inc., follow: Additional data: a. Acquisition of
Question:
The income statement and additional data of Casey Travel Products, Inc., follow:
Additional data:
a. Acquisition of plant assets was $153,000. Of this amount, $102,000 was paid in cash and $51,000 was financed by signing a note payable.
b. Proceeds from the sale of land totaled $45,000.
c. Proceeds from the issuance of common stock totaled $80,000.
d. Payment of a long-term note payable was $18,000.
e. Payment of dividends was $14,000.
f. From the balance sheets:
Requirements
1. Prepare Casey’s statement of cash flows for the year ended December 31, 2018, using the indirect method.
2. Evaluate the company’s cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation.
Common StockCommon 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...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.