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how do I determine depreciation expense for this question? (I'm preparing a cash flow statement using indirect method) went assets deprec'aton liibilifies Tota' current 'ignilities
how do I determine depreciation expense for this question? (I'm preparing a cash flow statement using indirect method)
went assets deprec'aton liibilifies Tota' current 'ignilities Long-term Cornrron stock Retained earnings Total stockholders' equitv Total hgbihties and stockholders' equity 2016 '7.000 250. orn s 690,000 $ X13,ooo s 165.000 32,DDn s 350,000 258.000 s 60B.ooo s 903. 30. 2016 701s 600,000 '250,000 s 520, coo 26,0Da s 200.rco 432,000 746.000 Dividends Ot- S7,OOO were declared and paid during the year _ NCW plant assets chased during the year tur S195,OOO in cash. Also, land was purchased for cash. Plant aesets sold during Ille year for S25,OOO in cash. The original cost of the assets sold Was $45,000, their book value was $30,000. Additional stock was issued tar cash, and a portion of the bara loan was repaid. Required l. Prepare a statement of cash flows for 2016 using thc direct method in thc Operating Activ- section. 2 Evaluate the fallowing statement: Whether a company uses thc direct or indirect method report cash flows From operations is lrrclcvant because thc amount of cash Ilow from ovxrar ing activities is thc same rcgardless of which method is used.
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