Sunnyvale Corporation prepared the following balance sheet data for 2011 and 2010: Cash needed to purchase new

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Sunnyvale Corporation prepared the following balance sheet data for 2011 and 2010:

Sunnyvale Corporation prepared the following balance sheet data

Cash needed to purchase new equipment and to improve the company€™s working capital position was raised by borrowing from the bank with a long-term note.
Equipment costing $75,000 with a book value of $15,000 was sold for $18,000; the gain on the sale was included in net income. The company paid cash dividends of $90,000 and reported earnings of $280,000 for 2011. There were no entries in the retained earnings account other than to record the dividends and net income for the year.
Prepare a statement of cash flows for 2011 using the indirectmethod.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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