Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Additional data related to 2025 are as follows. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,500

Additional data related to 2025 are as follows.\ Equipment that had cost

$10,900

and was

40%

depreciated at time of disposal was sold for

$2,500

.\

$10,000

of the long-term note payable was paid by issuing common stock.\ Cash dividends paid were

$4,900

.\ On January 1,2025 , the building was completely destroyed by a flood. Insurance proceeds on the building were

$30,200

(net of

$1,900

taxes).\ Debt investments (available-for-sale) were sold at

$1,700

above their cost. The company has made similar sales and investments in the past.\ Cash was paid for the acquisition of equipment.\ A long-term note for

$16,000

was issued for the acquisition of equipment.\ Interest of

$1,900

and income taxes of

$6,500

were paid in cash.\ Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.

-15,000

or in parenthesis e.g.

(15,000)

.

image text in transcribed
Additional data related to 2025 are as follows. 1. Equipment that had cost $10,900 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $4,900. 4. On January 1,2025 , the building was completely destroyed by a flood. Insurance proceeds on the building were $30,200 (net of $1,900 taxes). 5. Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $1,900 and income taxes of $6,500 were paid in cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. 15,000 or in parenthesis e.g. (15,000).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting principles and analysis

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

2nd Edition

471737933, 978-0471737933

More Books

Students also viewed these Accounting questions

Question

Vaughn Enterprises had the following selected transactions

Answered: 1 week ago

Question

Did you print a proof to view color and image consistency?

Answered: 1 week ago