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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 24
Statement of cash flows-direct method applied to PR 13-1B
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:
The income statement for the year ended December 31, 20Y9, is as follows:
Additional data obtained form an examination of the accounts in the ledger for 20Y9 are as follows:
A. Equipment and land were acquired for cash.
B. There were no disposals of equipment during the year.
C. The investments were sold for $91,800 cash.
D. The common stock was issued for cash.
E. There was a $102,000 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 Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:
The income statement for the year ended December 31, 20Y9, is as follows:
Additional data obtained form an examination of the accounts in the ledger for 20Y9 are as follows:
A. Equipment and land were acquired for cash.
B. There were no disposals of equipment during the year.
C. The investments were sold for $91,800 cash.
D. The common stock was issued for cash.
E. There was a $102,000 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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