The following items relate to the activities of Schmidt Company

The following items relate to the activities of Schmidt Company for 2011:
(a) Cash dividends declared and paid on common stock during the year totaled $90,000. In addition, on January 15, 2011, dividends of $25,000 that were declared in 2010 were paid.
(b) Retained earnings of $145,000 were appropriated during the year in anticipation of a major capital expansion in future years.
(c) Depreciation expense was $59,000.
(d) Equipment was purchased for $215,000 in cash.
(e) Early in the year, a 10% stock dividend was declared and distributed. This stock dividend resulted in the distribution of 40,000 new shares of $1 par common stock. The market value per share immediately after the stock dividend was $55.
(f) Cash revenues for the year totaled $582,000.
(g) Cash expenses for the year totaled $305,000.
(h) Old machinery was sold for its book value of $20,000.
(i) Near the end of the year, a 2-for-1 stock split was declared. The 440,000 shares of $1 par common stock outstanding at the time were exchanged for 880,000 shares with a par value of $0.50.
(j) Cash dividends totaling $27,000 were declared and paid on preferred stock.
(k) Land was acquired in exchange for 5,000 shares of $0.50 par value common stock. The land had a fair market value of $170,000.
(l) Assume no changes in current operating receivable and payable balances during the year.

Instructions:
Prepare a statement of cash flows for Schmidt Company for the year ended December 31, 2011. Use the indirect method for reporting cash flows from operating activities.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Dividend
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...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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