Refer to the information presented in PA-30.Data from PA-30Comprehensive income

Refer to the information presented in PA-30.

Data from PA-30

  • Comprehensive income totalled $350,000, including $50,000 in other comprehensive income.
  • Paid a cash dividend of $50,000 that was declared in 2015.
  • Interest expense for the year was $30,000; the opening and closing balances in the interest payable account were $25,000 and $10,000, respectively.
  • Accounts receivable increased $24,000 and accounts payable decreased $18,000 during the year.
  • CCI paid $47,000 cash for equipment.
  • CCI sold financial asset at amortized cost investments for $18,000. The book value of the investment was $20,000.
  • Depreciation expense for the year totalled $37,000.
  • CCI suffered an impairment loss on patents of $12,000.
  • Declared and issued a two-for-one stock split. There were 10,000 ordinary shares outstanding before the split with a collective market value of $2,500,000.

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method assuming that Coastal Cares Inc.’s policy is to report interest and dividends received as an investing activity and interest and dividends paid as a financing activity.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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...