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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 21
Statement of cash flows-direct method applied to PR-1A
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows.
The income statement for the year ended December 31, 20Y3, is as follows:
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
A. The investments were sold for $175,000 cash.
B. Equipment and land were acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $90,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows.
The income statement for the year ended December 31, 20Y3, is as follows:
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
A. The investments were sold for $175,000 cash.
B. Equipment and land were acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $90,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Explanation
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Statement of cash flows is a statement w...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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