Matthauson Company has the following comparative balance sheet data available:
Additional information:
1. The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31, 2017.
2. Dividends declared and paid in 2017, $70,000.
3. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.
4. New equipment was purchased for cash.
5. No common stock was retired during 2017.
The company also reports the following income statement for the year ending December 31, 2017:
Using the direct method, prepare the statement of cash flows for the year ending December 31, 2017.

Question

Matthauson Company has the following comparative balance sheet data available:
  Additional information:
1. The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31, 2017.
2. Dividends declared and paid in 2017, $70,000.
3. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.
4. New equipment was purchased for cash.
5. No common stock was retired during 2017.
The company also reports the following income statement for the year ending December 31, 2017:
  Using the direct method, prepare the statement of cash flows for the year ending December 31, 2017.

Quizplus · Accepted Answer

The Answer of Matthauson Company has the following comparative balance sheet data available:
  Additional information:
1. The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31, 2017.
2. Dividends declared and paid in 2017, $70,000.
3. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.
4. New equipment was purchased for cash.
5. No common stock was retired during 2017.
The company also reports the following income statement for the year ending December 31, 2017:
  Using the direct method, prepare the statement of cash flows for the year ending December 31, 2017.

Matthauson Company Has the Following Comparative Balance Sheet Data Available