The following information is available for the Ehrens Corporation:
Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid. Management wishes to classify this under financing activities.
(5) Additional shares were issued for cash.
Prepare a complete statement of cash flows for year 2011 using the indirect method.

Question

The following information is available for the Ehrens Corporation:
   Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid. Management wishes to classify this under financing activities.
(5) Additional shares were issued for cash.
Prepare a complete statement of cash flows for year 2011 using the indirect method.

Quizplus · Accepted Answer

The Answer of The following information is available for the Ehrens Corporation:
   Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid. Management wishes to classify this under financing activities.
(5) Additional shares were issued for cash.
Prepare a complete statement of cash flows for year 2011 using the indirect method.

The Following Information Is Available for the Ehrens Corporation