The financial statements of Lowz Company appear below:
The following additional data were provided:
1. Dividends declared and paid were $35000.
2. During the year equipment was sold for $17000 cash. This equipment cost $28000 originally and had a book value of $17000 at the time of sale.
3. All depreciation expense is in the operating expenses.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.
Instructions
Prepare a statement of cash flows for Lowz Company using the direct method.

Question

Quizplus · Accepted Answer

The Answer of The financial statements of Lowz Company appear below:
The following additional data were provided:
1. Dividends declared and paid were $35000.
2. During the year equipment was sold for $17000 cash. This equipment cost $28000 originally and had a book value of $17000 at the time of sale.
3. All depreciation expense is in the operating expenses.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.
Instructions
Prepare a statement of cash flows for Lowz Company using the direct method.

The Financial Statements of Lowz Company Appear Below