Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015: Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000
During 2014, the company repaid $43,000 of Long-Term Notes Payable.
During 2014, the company borrowed $34,000 on a new Note Payable
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Prepare a complete statement of cash flows using the direct method.
Assume Accrued Liabilities relate to Other Operating Expense

Question

Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015:   Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000
During 2014, the company repaid $43,000 of Long-Term Notes Payable.
During 2014, the company borrowed $34,000 on a new Note Payable
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Prepare a complete statement of cash flows using the direct method.
Assume Accrued Liabilities relate to Other Operating Expense

Quizplus · Accepted Answer

The Answer of Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015:   Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000
During 2014, the company repaid $43,000 of Long-Term Notes Payable.
During 2014, the company borrowed $34,000 on a new Note Payable
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Prepare a complete statement of cash flows using the direct method.
Assume Accrued Liabilities relate to Other Operating Expense

Avatar Company Uses the Direct Method to Prepare Its Statement