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Additional data (ignoring taxes): Not income for the year was $42,500. Cash dividends declared and paid during the year were $21, 125. A 20% stock
Additional data (ignoring taxes): Not income for the year was $42,500. Cash dividends declared and paid during the year were $21, 125. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. Investments that cost $25,000 were sold during the year for $28,750. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200. Marcus's 2014 income statement follows (ignoring taxes). Instructions (a) Compute net cash flow from operating activities using the direct method. (b) Prepare a statement of cash flows using the indirect method
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