Nichols Inc. reported the following amounts on its balance sheet at the end of 2019 and 2018

Question:

Nichols Inc. reported the following amounts on its balance sheet at the end of 2019 and 2018 for equity:

________________________ 12/31/2019 __________ 12/31/2018

Common stock .................. $210,000 ................... $135,000

Retained earnings ............... 495,300 ...................... 412,800

Required:

Assume that Nichols did not retire any stock during 2019, it reported $105,610 of net income for 2019, and any dividends declared were paid in cash. Determine the amounts Nichols would report in the financing section of the statement of cash flows?

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...