Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided
Question:
Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.
Additional data related to 2014 are as follows.
1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.
2. $10,000 of the long-term notes payable was paid by issuing ordinary shares.
3. Cash dividends paid were $5,000.
4. On January 1, 2014, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,000.
5. Equity investments (non-trading) were sold at $1,700 above their cost.
6. Cash was paid for the acquisition of equipment.
7. A long-term note for $16,000 was issued for the acquisition of equipment.
8. Interest of $2,000 and income taxes of $6,500 were paid in cash.
Instructions
Prepare a statement of cash flows using the indirectmethod.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield