Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $120,630. b. Depreciation reported on the income statement, $33,650. c. Equipment was purchased at a cost of $65,820, and fully depreciated equipment costing $18,020 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $73,510. a. f. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $120,630. b. Depreciation reported on the income statement, $33,650. c. Equipment was purchased at a cost of $65,820, and fully depreciated equipment costing $18,020 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $73,510. a. f. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8
are as follows:
Net income, $120,630.
b. Depreciation reported on the income statement, $33,650.
c. Equipment was purchased at a cost of $65,820, and fully depreciated equipment costing $18,020 was
discarded, with no salvage realized.
d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without
penalty.
e. 6,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $73,510.
a.
f.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
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