Audio City, Inc., is developing its annual financial statements at December 31. The statements are complete except
Question:
Additional Data:
a. Bought equipment for cash, $ 73,000.
b. Paid $ 15,000 on the long- term note payable.
c. Issued new shares of stock for $ 30,000 cash.
d. Dividends of $ 5,000 were paid in cash.
e. Other expenses included depreciation, $ 15,000; salaries and wages, $ 20,000; taxes, $ 25,000.
f. Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method.
2. Evaluate the statement of cash flows.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Question Posted: