Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: a. net income,
The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: a. net income, $59,200 b. payment for purchase of building, $98,000 c. increase in accounts recelvable, $7,400 d. proceeds from issuance of common stock, $37,100 e. increase in accounts payable, $4,500 f. proceeds from sale of land, $7,000 9. depreciation expense, $12,600 h. payment of dividends, $36,000 1. gain on sale of land, $5,300 1. decrease in inventory, $3,700 k. payment for purchase of long-term investments, $9,600 1. amortization of discount on bonds payable, $1,900 m. proceeds from issuance of note, $18,000 n. Increase in deferred taxes payable, $5,000 o. equipment acquired by capital lease, $19,500 p. decrease in salaries payable, $2,300 q. beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outfiows, a decrease in cash or cash payments. Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense Add: Amortization of discount on bonds payable Add: Accumulated depreciation Less: Gain on sale of land 5,300 Adjustments for cash flow effects from working capital items: Net cash provided by operating activities Investing Activities: Net cash used for investing activities 2. Assume the company's preferred stock has been selling for $120 per share during 2019 . How many shares would the company have had to issue to avold having a decrease in cash during the year? shares
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started