Marcus Interiors began the year with cash of $50,000. During the year, Marcus Interiors earned service revenue

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Marcus Interiors began the year with cash of $50,000. During the year, Marcus Interiors earned service revenue of $402,000. Cash collections for the year were $385,000. Expenses for the year were $375,000, with $360,000 of that total paid in cash. Marcus Interiors also used cash to purchase equipment for $70,000 and to pay a cash dividend to stockholders of $28,000. During the year, Marcus Interiors borrowed $54,000 cash by issuing a note payable.
Requirement
Prepare the company's statement of cash flows using the direct method.
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...
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Managerial Accounting

ISBN: 978-0132890540

3rd edition

Authors: Karen W. Braun, Wendy M. Tietz

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