Question
A comparative balance sheet for Al corn Products containing data for the last two years is as follows: The following additional information is available about
A comparative balance sheet for Al corn Products containing data for the last two years is as follows:
The following additional information is available about the company's activities during 2008, the current year:
a. Cash dividends declared and paid to common stockholders totaled $75,000.
b. Long-term notes with a value of $380,000 were repaid during the year.
c. Equipment was sold during the year for $70,000. The equipment had cost $130,000 and had $40,000 in accumulated depreciation on the date of sale.
d. Long-term investments were sold during the year for $110,000. These investments had cost $50,000 when purchased several years ago.
The company reported net income during 2008 as follows:
Required:
1. Prepare worksheet like Exhibit 15-9 for Al corn Products.
2. Using the indirect method, prepare statement of cash flows for 2008.
3. What problems relating to the company's activities are revealed by the statement of cash flows that you have prepared?
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