The income statement, balance sheets, and additional information for Communication Accessories are provided. Additional Information for 2015:

Question:

The income statement, balance sheets, and additional information for Communication Accessories are provided.

The income statement, balance sheets, and additional information for Communication

Additional Information for 2015:
1. Purchase additional investment in stocks for $95,000.
2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land.
3. Purchase $80,000 in equipment by borrowing $80,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. The company declares and pays a cash dividend of $200,000.

Required:
Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanyingfootnote.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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...
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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