Cannon Company has the following information for the year ending December 31,2015:
• Long-term debt of $18,000 was issued for cash.
• Cash paid for labor during 2015 amounted to $489,500.
• During the year,Cannon experienced a pension outflow of $14,000.
• Dividends of $34,000 were received.
• Cannon's cash balance at the beginning of 2015 was $975,000;at the end of 2015 the cash balance was $839,500.
• The company made an investment of $310,000 in an affiliate company.
• A lease payment of $110,000 was made on November 1,2015.There is no asset recorded in connection with the lease.
• During the year,Cannon collected $780,000 cash from customers.
• Cash paid for income taxes amounted to $56,000 for all of 2015.
• During 2015,Cannon discontinued its consumer electronics division.The business was sold resulting in a $12,000 net cash inflow.
Required:
Prepare Cannon Company's statement of cash flows for the year ending December 31,2015.

Question

Quizplus · Accepted Answer

The Answer of Cannon Company has the following information for the year ending December 31,2015:
• Long-term debt of $18,000 was issued for cash.
• Cash paid for labor during 2015 amounted to $489,500.
• During the year,Cannon experienced a pension outflow of $14,000.
• Dividends of $34,000 were received.
• Cannon's cash balance at the beginning of 2015 was $975,000;at the end of 2015 the cash balance was $839,500.
• The company made an investment of $310,000 in an affiliate company.
• A lease payment of $110,000 was made on November 1,2015.There is no asset recorded in connection with the lease.
• During the year,Cannon collected $780,000 cash from customers.
• Cash paid for income taxes amounted to $56,000 for all of 2015.
• During 2015,Cannon discontinued its consumer electronics division.The business was sold resulting in a $12,000 net cash inflow.
Required:
Prepare Cannon Company's statement of cash flows for the year ending December 31,2015.

Cannon Company Has the Following Information for the Year Ending