Question: please help, im confused and this is second try . a. Compute net cash flow from operating activities using direct method. b. Prepare a statement

please help, im confused and this is second try .  please help, im confused and this is second try . a.
Compute net cash flow from operating activities using direct method. b. Preparea. Compute net cash flow from operating activities using direct method.
b. Prepare a statement of cash flows using the indirect method.

Comparative balance sheet accounts of Marigold inc are presented below. Additional data (ignoring taxes): 1. Net income for the year was \\( \\$ 44,400 \\). 2. Cash dividends declared and paid during the year were \\( \\$ 20,900 \\). 3. A 20\\% stock dividend was declared during the year. \\( \\$ 25,000 \\) of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20\\%) that cost \\( \\$ 25,100 \\) were sold during the year for \\( \\$ 28,100 \\). No unrealized gains and losses were recorded on these investments in 2025. 5. Machinery that cost \\( \\$ 3,800 \\), on which \\( \\$ 750 \\) of depreciation had accumulated, was sold for \\( \\$ 2,250 \\). Marigold's 2025 income statement follows (ignoring taxes). (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sian preceding the number eg. -45 or parentheses es. (45))

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!