Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of Cash Flows - Indirect Method The comparative balance sheet of Charles Inc. for December 31, 2014 and 2013, is shown as follows: .

Statement of Cash Flows - Indirect Method

The comparative balance sheet of Charles Inc. for December 31, 2014 and 2013, is shown as follows:

image text in transcribed.

Additional data obtained from an examination of the accounts in the ledger for 2014 are as follows:

  1. The investments were sold for $210,000 cash.
  2. Equipment and land were acquired for cash.
  3. There were no disposals of equipment during the year.
  4. The common stock was issued for cash.
  5. There was a $190,280 credit to Retained Earnings for net income.
  6. There was a $72,000 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

image text in transcribedimage text in transcribed

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

Step: 3

blur-text-image

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

The Quality Audit Handbook

Authors: Asq Quality Audit Division, J. P. Russell

2nd Edition

087389460X, 978-0873894609

More Books

Students also viewed these Accounting questions