The income statement and additional data of Specialized Services, Inc. follow: Additional data follow: a. Acquisition of
Question:
The income statement and additional data of Specialized Services, Inc. follow:
Additional data follow:
a. Acquisition of plant assets totaled $116,000. Of this amount, $101,000 was paid in cash and a $15,000 note payable was signed for the remainder.
b. Proceeds from sale of land totaled $24,000. No gain was recognized on the sale.
c. Proceeds from issuance of common shares totaled $30,000.
d. Payment of long-term note payable was $15,000.
e. Payment of dividends was $11,000.
f. Data from the comparative balance sheet follow:
Requirements
1. Prepare Specialized Services€™ cash flow statement for the year ended June 30, 2014, using the indirect method.
2. Evaluate Specialized Services€™ cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.
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...
Step by Step Answer:
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper