Determining Cash Flows from Financing Activities Nichols Inc. reported the following amounts on its balance sheet for equity: Jan. 1 $105,000 376,750 Dec. 31 Common stock Retained earnings Required: Assume that, for the current year, Nichols did not retire any stock, it reported $94,300 of net income for 2019, and any dividends declared were paid in cash. Determine the amounts Nichols would report in the financing section of the statement of cash flows. Issuance of common stock Payment of cash dividends $162,000 455,490
Determining Cash Flows from Financing Activities Nichols Inc. reported the following amounts on its balance sheet for equity: Jan. 1 $105,000 376,750 Dec. 31 Common stock Retained earnings Required: Assume that, for the current year, Nichols did not retire any stock, it reported $94,300 of net income for 2019, and any dividends declared were paid in cash. Determine the amounts Nichols would report in the financing section of the statement of cash flows. Issuance of common stock Payment of cash dividends $162,000 455,490
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 44E
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![Determining Cash Flows from Financing Activities
Nichols Inc. reported the following amounts on its balance sheet for equity:
Common stock
Retained earnings
Required:
Jan. 1
$105,000
376,750
Dec. 31
$162,000
455,490
Assume that, for the current year, Nichols did not retire any stock, it reported $94,300 of net income for 2019, and any dividends declared were paid in cash. Determine
the amounts Nichols would report in the financing section of the statement of cash flows.
Issuance of common stock
Payment of cash dividends](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3af7361a-d255-4662-917d-2558b30f893a%2Ffcf13b0b-8d1f-43ba-9aab-4caa65383c03%2F23hpn7t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Determining Cash Flows from Financing Activities
Nichols Inc. reported the following amounts on its balance sheet for equity:
Common stock
Retained earnings
Required:
Jan. 1
$105,000
376,750
Dec. 31
$162,000
455,490
Assume that, for the current year, Nichols did not retire any stock, it reported $94,300 of net income for 2019, and any dividends declared were paid in cash. Determine
the amounts Nichols would report in the financing section of the statement of cash flows.
Issuance of common stock
Payment of cash dividends
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