Uni-Select Inc.’s comparative balance sheet information at December 31, 2014 and 2013, and its income statement for the year ended December 31, 2014, are as follows:
During 2014, the following transactions occurred: 1. Purchased equipment for $19,200 cash. 2. Sold the long-term investment on January 1, 2014, for $28,800. 3. Sold equipment for $6,720 cash that had originally cost $30,720 and had $20,160 of accumulated depreciation. 4. Issued $24,000 of bonds payable at face value.
Required 1. How much cash was paid in dividends? 2. Prepare a statement of cash flows for Uni-Select for the year ended December 31, 2014, using the indirect method. Analysis Component: The net increase in cash during 2014 for Uni-Select. was $30,720 Briefly explain what caused this change using the statement of cash flows prepared in part 2above.