Cosmat Inc. reported net income of $128,000 for 20Y9. The liability and equity accounts from the company’s comparative balance sheet are as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Accounts payable $57,920 $53,810 Dividends payable 20,000 16,000 Bonds payable 290,000 450,000 Common stock, $10 par value 180,000 120,000 Paid-in capital in excess of par—common stock 328,000 232,000 Retained earnings 488,000 375,000 During the year, the company retired bonds payable at their face amount, declared dividends of $15,000, and issued 6,000 shares of common stock for $26 per share. Prepare the Cash Flows from (used for) Financing Activities section of the statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Cosmat Inc.
Cosmat Inc. reported net income of $128,000 for 20Y9. The liability and equity accounts from the company’s comparative balance sheet are as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Accounts payable $57,920 $53,810 Dividends payable 20,000 16,000 Bonds payable 290,000 450,000 Common stock, $10 par value 180,000 120,000 Paid-in capital in excess of par—common stock 328,000 232,000 Retained earnings 488,000 375,000 During the year, the company retired bonds payable at their face amount, declared dividends of $15,000, and issued 6,000 shares of common stock for $26 per share. Prepare the Cash Flows from (used for) Financing Activities section of the statement of cash flows. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Cosmat Inc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cosmat Inc. reported net income of $128,000 for 20Y9. The liability and equity accounts from the company’s comparative
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||||
| Accounts payable | $57,920 | $53,810 | ||||
| Dividends payable | 20,000 | 16,000 | ||||
| Bonds payable | 290,000 | 450,000 | ||||
| Common stock, $10 par value | 180,000 | 120,000 | ||||
| Paid-in capital in excess of par—common stock | 328,000 | 232,000 | ||||
| 488,000 | 375,000 |
During the year, the company retired bonds payable at their face amount, declared dividends of $15,000, and issued 6,000 shares of common stock for $26 per share.
Prepare the
Cosmat Inc.
Statement of Cash Flows (partial)
| Cash flows from (used for) financing activities: | ||
|
|
$Cash received from issuing common stock | |
|
|
Cash paid to retire bonds payable | |
|
|
Cash dividends | |
|
|
$Net cash flows used for financing activities |
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