(5) * importnant * Common Stock should be $3par under \"additional information\"

Question

(5)

* importnant *

Common Stock should be $3par

under "additional information" - 3. should be issued 1,000 shares (not 100 as listed)

Traynham Company runs a retail company and recently completed its third year of operations. The balance sheet and income statement follow: Purchased equipment by paying signing a long-term note for $8,000 and paying cash for the balance Paid cash as a payment on the long-term notes payable Issued 100 shares of common stock for cash Declared and paid cash dividends instructions: Prepare a statement of cash flows for 2014 using the indirect method.

Explanation / Answer

Indirect method

Cash paid for long term note payable

(36,000 +8000 - 28,000 )

Dividends paid

(59,400 +27,600 - 71,000)

Net income $27,600 Add: depreciation $4,300     A/c recievable decrease 3,300 accounts payable increase 3,300 income tax payable increase 3,000 less inventory increase ($1600) $12,300 Net cash flow from operating acitivities $39,900 Net cash flow from investing activities Cash paid for purchase of equipment (23,000) Net cash flow form financing activiites issue of stock (3000 + 7000) $10,000

Cash paid for long term note payable

(36,000 +8000 - 28,000 )

(16,000)

Dividends paid

(59,400 +27,600 - 71,000)

(16,000) ($22,000) Net cash flow ($5,100) add: Beginning cash flow $58,100 Net cash at end $53,000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.