Condensed financial data of Drake Company appear below: Additional information:
1. New plant assets costing $100000 were purchased for cash in 2017.
2. Old plant assets costing $25000 were sold for $10000 cash when book value was $13000.
3. Bonds with a face value of $40000 were converted into $40000 of common stock.
4. A cash dividend of $15000 was declared and paid during the year.
5. Accounts payable pertain to merchandise purchases.
Instructions
Prepare a statement of cash flows for the year using the direct method.

Question

Condensed financial data of Drake Company appear below:  Additional information:
1. New plant assets costing $100000 were purchased for cash in 2017.
2. Old plant assets costing $25000 were sold for $10000 cash when book value was $13000.
3. Bonds with a face value of $40000 were converted into $40000 of common stock.
4. A cash dividend of $15000 was declared and paid during the year.
5. Accounts payable pertain to merchandise purchases.
Instructions
Prepare a statement of cash flows for the year using the direct method.

Quizplus · Accepted Answer

The Answer of 
Condensed financial data of Drake Company appear below:  Additional information:
1. New plant assets costing $100000 were purchased for cash in 2017.
2. Old plant assets costing $25000 were sold for $10000 cash when book value was $13000.
3. Bonds with a face value of $40000 were converted into $40000 of common stock.
4. A cash dividend of $15000 was declared and paid during the year.
5. Accounts payable pertain to merchandise purchases.
Instructions
Prepare a statement of cash flows for the year using the direct method.

Condensed Financial Data of Drake Company Appear Below: Additional