The records of George Company provided the following information for the year ended December 31, 2011:

Additional Information:
1. Sold the long-term investment at cost, for cash. The securities were classified as available-for-sale. The market value had not changed since acquisition.
2. Declared and paid a cash dividend of $28,000.
3. Purchased operational assets that cost $68,000 by giving a $48,000 long-term note payable and by paying $20,000 cash.
4. Paid a $16,000 long-term note payable by issuing common stock having a market value of $16,000.
5. Issued a stock dividend of $44,000.
Required:
Prepare a statement of cash flows using the direct method for George Company for the year ending December 31, 2011.

Question

The records of George Company provided the following information for the year ended December 31, 2011:
  
Additional Information:
1. Sold the long-term investment at cost, for cash. The securities were classified as available-for-sale. The market value had not changed since acquisition.
2. Declared and paid a cash dividend of $28,000.
3. Purchased operational assets that cost $68,000 by giving a $48,000 long-term note payable and by paying $20,000 cash.
4. Paid a $16,000 long-term note payable by issuing common stock having a market value of $16,000.
5. Issued a stock dividend of $44,000.
Required:
Prepare a statement of cash flows using the direct method for George Company for the year ending December 31, 2011.

Quizplus · Accepted Answer

The Answer of The records of George Company provided the following information for the year ended December 31, 2011:
  
Additional Information:
1. Sold the long-term investment at cost, for cash. The securities were classified as available-for-sale. The market value had not changed since acquisition.
2. Declared and paid a cash dividend of $28,000.
3. Purchased operational assets that cost $68,000 by giving a $48,000 long-term note payable and by paying $20,000 cash.
4. Paid a $16,000 long-term note payable by issuing common stock having a market value of $16,000.
5. Issued a stock dividend of $44,000.
Required:
Prepare a statement of cash flows using the direct method for George Company for the year ending December 31, 2011.

The Records of George Company Provided the Following Information for the Year