Burdic Company's net income last year was $70,000. Changes in the company's balance sheet accounts for the year appear below: Inereases (Decreases) Debit balances: Cash ,................ Accounts receivable. Inventory ..... Prepaid expenses...... Long-term investments Plant and equipment $(16,000) $13,000 $18,000 $(5,000) $20,000 $40,000 Credit balances: Accumulated depreciation. Accounts payable. Acerued liabilities Taxes payable.... Bonds payable Deferred taxes $36,000 $14,000 $(13,000) $27,000 $(70,000) $7,000 Common stock Retained earnings. ...... $30,000 $39,000 The company declared and paid cash dividends of $31,000 last year. Required: a. Construct the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Construct the investing activities section of the company's statement of cash flows for the year. c. Construct the financing activities section of the company's statement of cash flows for the year.
Burdic Company's net income last year was $70,000. Changes in the company's balance sheet accounts for the year appear below: Inereases (Decreases) Debit balances: Cash ,................ Accounts receivable. Inventory ..... Prepaid expenses...... Long-term investments Plant and equipment $(16,000) $13,000 $18,000 $(5,000) $20,000 $40,000 Credit balances: Accumulated depreciation. Accounts payable. Acerued liabilities Taxes payable.... Bonds payable Deferred taxes $36,000 $14,000 $(13,000) $27,000 $(70,000) $7,000 Common stock Retained earnings. ...... $30,000 $39,000 The company declared and paid cash dividends of $31,000 last year. Required: a. Construct the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Construct the investing activities section of the company's statement of cash flows for the year. c. Construct the financing activities section of the company's statement of cash flows for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Burdic Company's net income last year was $70,000. Changes in the company's balance sheet
accounts for the year appear below:
Inereases
(Deereases)
Debit balances:
Cash ...
Accounts receivable
Inventory
Prepaid expenses..
Long-term investments
Plant and equipment
$(16,000)
$13,000
$18,000
$(5,000)
$20,000
$40,000
Credit balances:
Accumulated depreeiation
$36,000
Accounts payable...
Accrued liabilities
Taxes payable..
Bonds payable.
Deferred taxes
$14,000
$(13,000)
$27,000
$(70,000)
$7,000
Common stock
$30,000
Retained earnings.
$39,000
The company declared and paid cash dividends of $31,000 last year.
Required: a. Construct the operating activities section of the company's statement of cash
flows for the year. (Use the indirect method.)
b. Construct the investing activities section of the company's statement of cash flows for the
year.
c. Construct the financing activities section of the company's statement of cash flows for the
year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04269bc4-9beb-4a7f-93b4-f273dc86df89%2Fcdcdf4b3-f3ba-436d-94f6-669a10720714%2Fefbjxuo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Burdic Company's net income last year was $70,000. Changes in the company's balance sheet
accounts for the year appear below:
Inereases
(Deereases)
Debit balances:
Cash ...
Accounts receivable
Inventory
Prepaid expenses..
Long-term investments
Plant and equipment
$(16,000)
$13,000
$18,000
$(5,000)
$20,000
$40,000
Credit balances:
Accumulated depreeiation
$36,000
Accounts payable...
Accrued liabilities
Taxes payable..
Bonds payable.
Deferred taxes
$14,000
$(13,000)
$27,000
$(70,000)
$7,000
Common stock
$30,000
Retained earnings.
$39,000
The company declared and paid cash dividends of $31,000 last year.
Required: a. Construct the operating activities section of the company's statement of cash
flows for the year. (Use the indirect method.)
b. Construct the investing activities section of the company's statement of cash flows for the
year.
c. Construct the financing activities section of the company's statement of cash flows for the
year.
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