The comparative balance sheets for Russell Company appear below: Additional information:
1) Net income for the year ending December 31, 2014, was $30,000.
2) Cash dividends of $12,000 were declared and paid during the year.
3) Stock investments that had a book value of $18,000 were sold for $13,000.
4) Sales for 2014 are $130,000.
Instructions
1) Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2) Compute the following cash based ratios:

Question

The comparative balance sheets for Russell Company appear below:  Additional information:
1) Net income for the year ending December 31, 2014, was $30,000.
2) Cash dividends of $12,000 were declared and paid during the year.
3) Stock investments that had a book value of $18,000 were sold for $13,000.
4) Sales for 2014 are $130,000.
Instructions
1) Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2) Compute the following cash based ratios:

Quizplus · Accepted Answer

The Answer of The comparative balance sheets for Russell Company appear below:  Additional information:
1) Net income for the year ending December 31, 2014, was $30,000.
2) Cash dividends of $12,000 were declared and paid during the year.
3) Stock investments that had a book value of $18,000 were sold for $13,000.
4) Sales for 2014 are $130,000.
Instructions
1) Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2) Compute the following cash based ratios:

The Comparative Balance Sheets for Russell Company Appear Below