Paddleboard Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and

Question:

Paddleboard Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020, is shown below along with some other information.

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Other information regarding Paddleboard Inc. and its activities during 2020:

1. Assume all accounts have normal balances.

2. Cash dividends were declared and paid during the year.

3. There were no sales of property, plant, and equipment assets during the year.

4. Investments were sold for cash at their original cost.

Required

Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020.

Analysis Component:

a. Paddleboard Inc. experienced an increase in cash during 2020. Does this necessarily represent a favourable situation? Explain why or why not.

b. Explain the causes of change in Paddleboard Inc.?s cash situation during 2020.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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