Brief Exercise $14-30$ Cash Flows from Financing Activities

Objective $2$ Example $14\mathrm{.}5$

Davis Company earned net income of $$900,000$ in $20$X$2.$ Davis provided the following information:

Davis Company

Comparative Balance Sheets

At December $31,20$X$1$ and $20$X$2$

$\backslash$table$[[,20x1,,20$ X $2],[$Bonds payable,$-,$$$,385,000],[$Mortgage payable,$100,000,,],[$Common stock,$375,000,,375,000],[$Paid$-$in capital in excess of par,$380,000,,380,000],[$Retained earnings,$1,825,000,,2,325,000$