Data from the comparative balance sheet of Izzie Company at March 31, 2014, follow: Izzie Companys transactions

Question:

Data from the comparative balance sheet of Izzie Company at March 31, 2014, follow:

Izzie Company€™s transactions during the year ended March 31, 2014, included the following:
Payment of cash dividend ................$30,000
Purchase of equipment for cash .............. 78,700
Issuance of long-term note payable in exchange for cash ... 50,000
Depreciation Expense...............$17,300
Purchase of building for cash ............... 47,000
Net Income ..................... 70,000
Issuance of common shares ............... 11,000
Requirements
1. Prepare Izzie Company€™s cash flow statement for the year ended March 31, 2014, using the indirect method to report cash flows from operating activities.
2. Evaluate Izzie€™s cash flows for the year. Mention all three categories of cash flows and give the reason for your evaluation.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...