Refer to the data given for the Lowe Company in Problem P12-2B. Required a. Compute the change
Question:
Refer to the data given for the Lowe Company in Problem P12-2B.
Required
a. Compute the change in cash that occurred during 2019.
b. Prepare a statement of cash flows using the direct method.
Problem P12-2B.
The Lowe Company's income statement and comparative balance sheets as of December 31 of 2019 and 2018 are presented below:
During the year, Lowe Company sold equipment for \(\$ 27,000\) cash that originally cost \(\$ 57,000\) and had \(\$ 46,000\) accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of \(\$ 28,000\) were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise purchases.
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