Additional information for the year: 1. Dividends declared and paid totaled $700. 2. On January 1, 2020, convertible preferred stock that had originally been issued at par value was converted into 500 shares of common stock. The book value method was used to account for the conversion. 3. Long-term nonmarketable investments that cost $1,600 were sold for $2,300. 4. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the year. 5. Equipment with a cost of $2,000 and a book value of $300 was sold for $100. The company uses one Accumulated Depreciation account for all depreciable assets. 6. Equipment was purchased at a cost of $16,200. 7. The 12% bonds payable were issued on August 31, 2020, at 97. They mature on August 31, 2025. The company uses the straight-line method to amortize the discount. 8. Taxable income was less than pretax accounting income, resulting in a $696 increase in deferred taxes payable. Required: Prepare the complete statement of cash flows (operating, investing, financing), using the Direct Method to prepare the cash flows from operating activities.
Additional information for the year:
1. Dividends declared and paid totaled $700.
2. On January 1, 2020, convertible
3. Long-term nonmarketable investments that cost $1,600 were sold for $2,300.
4. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the year.
5. Equipment with a cost of $2,000 and a book value of $300 was sold for $100. The company uses one
6. Equipment was purchased at a cost of $16,200.
7. The 12% bonds payable were issued on August 31, 2020, at 97. They mature on August 31, 2025. The company uses the straight-line method to amortize the discount.
8. Taxable income was less than pretax accounting income, resulting in a $696 increase in
Required:
Prepare the complete statement of
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