The income statement and additional data of Value World, Inc., follow: Additional data: a. Collections from customers

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The income statement and additional data of Value World, Inc., follow:
The income statement and additional data of Value World, Inc.,

Additional data:
a. Collections from customers are $12,000 less than sales.
b. Payments to suppliers are $2,300 less than the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $1,500 more than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets is $210,000. Of this amount, $110,000 is paid in cash and $100,000 by signing a long-term note payable.
f. Proceeds from sale of land total $29,000.
g. Proceeds from issuance of common stock total $31,000.
h. Payment of a long-term note payable is $17,000.
i. Payment of dividends is $ 12,500.
j. Cash balance, June 30, 2015, was $25,000.
Requirements
1. Prepare Value World, Inc.'s, statement of cash flows and accompanying schedule of non cash investing and financing activities. Report operating activities by the direct method.
2. Evaluate Value World's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation.

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...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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