Texas Corporation uses the indirect method to prepare the operating activities section of its statement of cash flows. The company's comparative balance sheet information was as follows:
The company reported net income for Year 2 of $40,000. No property, plant & equipment was disposed of during the year. No additional bonds were issued during the year. Texas paid $16,000 in cash dividends during Year 2.
Required:Prepare a statement of cash flows for Year 2.

Question

Texas Corporation uses the indirect method to prepare the operating activities section of its statement of cash flows. The company's comparative balance sheet information was as follows:
  The company reported net income for Year 2 of $40,000. No property, plant & equipment was disposed of during the year. No additional bonds were issued during the year. Texas paid $16,000 in cash dividends during Year 2.
Required:Prepare a statement of cash flows for Year 2.

Quizplus · Accepted Answer

The Answer of Texas Corporation uses the indirect method to prepare the operating activities section of its statement of cash flows. The company's comparative balance sheet information was as follows:
  The company reported net income for Year 2 of $40,000. No property, plant & equipment was disposed of during the year. No additional bonds were issued during the year. Texas paid $16,000 in cash dividends during Year 2.
Required:Prepare a statement of cash flows for Year 2.

Texas Corporation Uses the Indirect Method to Prepare the Operating