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Question 6 [25 points] ABC Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below.
Question 6 [25 points] ABC Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding ABC Inc. and its activities during 2015 follow in (a) through (e) : a. Assume all accounts have normal balances. b. Equipment was sold for cash of $18,200. C. Old machinery was sold for cash of $63,000. New machinery was purchased for $45,000 cash. d. Share capital was issued for cash. e. Cash dividends were declared and paid. Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2015. (select one) Statement of Cash Flows (select one) ABC Inc. Adjusted Trial Balance December 31 Account 2015 2014 Accounts Payable.. 66,220 60,000 Accounts Receivable 50,600 63,250 Accumulated Depreciation, Equipment 4,000 78,500 Accumulated Depreciation, Machinery 9,400 54,000 Allowance for Doubtful Accounts. 4,600 12,250 Depreciation Expense, Equipment. 7.900 7,900 Depreciation Expense, Machinery... 9,100 9,100 Cash 333,550 270,000 Cash Dividends.. 52,000 52,000 Equipment 26,600 128,000 Machinery 73,300 143,000 Merchandise Inventory... 86,960 95,500 Long-term Notes Payable 44,990 50,000 Other Expenses (including losses)... 710,000 25,000 Retained earnings 88,000 74,000 Revenues (including gains). 747,000 108,000 Share capital 346,000 311,000 Unearned Revenue 39,800 46,000
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