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This is my Questin Comparative balance sheet accounts of Marcus Inc. are presented below. Comparative balance sheet accounts of Marcus Inc. are presented below. Additional
This is my Questin Comparative balance sheet accounts of Marcus Inc. are presented below.
Comparative balance sheet accounts of Marcus Inc. are presented below. Additional data (ignoring taxes): 1 . 2 . 3 . 4 . 5 . Net income for the year was $39,510. Cash dividends declared and paid during the year were $21,490. A 20% stock dividend was declared during the year. $24,400 of retained earnings was capitalized. Investments that cost $24,900 were sold during the year for $28,090. Machinery that cost $3,780, on which $741 of depreciation had accumulated, was sold for $2,150. Marcus's 2014 income statement follows (ignoring taxes). Sales revenue $537,939 Less: Cost of goods sold 380,440 Gross margin 157,499 Less: Operating expenses (includes $10,201 depreciation and $5,340 bad debts) 120,290 Income from operations 37,209 Other: Gain on sale of investments $3,190 Loss on sale of machinery (889 ) Net income 2,301 $39,510 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ Net cash flow from operating activities (b) 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).) ALEXANDER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 (Indirect Method) $ Adjustments to reconcile net income to $ $Step by Step Solution
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