The comparative balance sheet of Graphic Design Studio, Inc., at June 30, 20X9, included these amounts. Transaction
Question:
The comparative balance sheet of Graphic Design Studio, Inc., at June 30, 20X9, included these amounts.
Transaction data for the year ended June 30, 20X9:
a. Net income, $60,300
b. Depreciation expense on equipment, $13,400
c. Purchased long-term investment, $4,900
d. Sold land for $46,900, including $6,700 loss
e. Acquired equipment by issuing long-term note payable, $14,300
f. Paid long-term note payable, $61,000
g. Received cash for issuance of common stock, $3,900
h. Paid cash dividends, $38,100
i. Paid short-term note payable by issuing common stock, $4,700
Required
1. Prepare the statement of cash flows of Graphic Design Studio, Inc., for the year ended June 30, 20X9, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current accounts except short-term notes payable result from operating transactions.
Step by Step Answer:
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren