On April 1, Year 1, Exotic Motor Cars Incorporated declared a $136,000 cash dividend to be paid on April 30 to shareholders of record on April 15. Required: Record the events occurring on April 1, April 15, and April 30 in a horizontal statements model. In the Statement of Cash Flows column. indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Date April 1 April 15 April 30 Assets = Balance Sheet Liabilities + Common Stock + Retained Earnings Revenue Income Statement Expenses = = Net Income Statement of Cash Flows
On April 1, Year 1, Exotic Motor Cars Incorporated declared a $136,000 cash dividend to be paid on April 30 to shareholders of record on April 15. Required: Record the events occurring on April 1, April 15, and April 30 in a horizontal statements model. In the Statement of Cash Flows column. indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Date April 1 April 15 April 30 Assets = Balance Sheet Liabilities + Common Stock + Retained Earnings Revenue Income Statement Expenses = = Net Income Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:### Financial Statement Analysis: Dividend Declaration
**Scenario:**
On April 1, Year 1, Exotic Motor Cars Incorporated declared a $136,000 cash dividend to be paid on April 30 to shareholders of record on April 15.
**Objective:**
Record the events occurring on April 1, April 15, and April 30 using a horizontal statements model. For the Statement of Cash Flows column, indicate if the item is an operating activity (OA), investing activity (IA), or financing activity (FA).
**Instructions:**
Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
---
**Table Overview:**
The table spans three primary financial statements: Balance Sheet, Income Statement, and Statement of Cash Flows.
1. **Balance Sheet:** Includes Assets, Liabilities, Common Stock, and Retained Earnings.
2. **Income Statement:** Includes Revenue, Expenses, and Net Income.
3. **Statement of Cash Flows:** To categorize the nature of cash flows.
**Columns and Entries:**
- **Date:** Lists April 1, April 15, and April 30 as key dates.
- For each date, record transactions affecting:
- **Assets:** Changes in company resources.
- **Liabilities:** Changes in company obligations.
- **Common Stock & Retained Earnings:** Changes reflecting shareholder equity.
- **Revenue, Expenses, Net Income:** Affect profitability.
- **Statement of Cash Flows:** Classify as OA, IA, or FA.
**Note:** Leave cells blank if no transactions occur on specific dates.
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