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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 27
Statement of cash flows-direct method applied to PR 16-1B
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is:
The income statement for the year ended December 31, 2016, is as follows:
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is:
The income statement for the year ended December 31, 2016, is as follows:
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Explanation
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Statement of cash flows - direct method....
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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