QUESTION 7Presented below are the comparative December31 financial statemenes for Dubai Industries, Inc.tin s Millions). Prepare a statement of cash flowsfor December 31, Year 2 uning the indirectmethod.Dubai Iedustries, IncBalance SheetsA: December 31, Year 2 andYear 1Year 2Year1CashS96,719Accounts Recetvable100,00085.313Inventory206.250181.250Prepaid ImsuranceLand. Buildings, andEquipment2.5001.562.3001406.250AccumulatedDepreciation(762,500)(715.000Investments10.20Total Assets1225 219Accounts PayableSalartes Piryahle25.0003025Notes Payable31.250第750 Salazies Payable25,00030,625Notes Payable31.25093,750Bonds Payable250.000Common Stock375.000375,000Retalned Earning410041224 219110524Additional information for Year 2(1) sold avallable tor ale securikies costings86,875 for $93,500.(21 Equipment costing s25.000 with a book valueef $6.250 was sold for S7,500(3 Isssed S% bonds at face value for $250,c00(4) Purchased new equipetent for $181.250 andpaid cast.(5) Paid cash dividends of $25,000.(6) Net income was S62.500.What is the gain on sale of investments ?9250056256625

The cash flow statement is prepared to record cash flow from various activities during the period.

soditonal intormation Soe Year 2 n Seld vallable for ade securities costing TS for s500 Equipment costing 2.000 with a book value rs6.250 was sold for S7.500 3 ssued % bonds at face value for s23se.000 4 Purchased new equipment for SIN1250 and paid cash. S) Paid casb dividends of s25.000. Net income was 562.500. What is the gain on sale of investments? O 12s00 O se25

soditonal intormation Soe Year 2 n Seld vallable for ade securities costing TS for s500 Equipment costing 2.000 with a book value rs6.250 was sold for S7.500 3 ssued % bonds at face value for s23se.000 4 Purchased new equipment for SIN1250 and paid cash. S) Paid casb dividends of s25.000. Net income was 562.500. What is the gain on sale of investments? O 12s00 O se25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Salazies Payable
25,000
30,625
Notes Payable
31.250
93,750
Bonds Payable
250.000
Common Stock
375.000
375,000
Retalned Earning
41004
1224 219
110524
Additional information for Year 2
(1) sold avallable tor ale securikies costing
s86,875 for $93,500.
(21 Equipment costing s25.000 with a book value
ef $6.250 was sold for S7,500
(3 Isssed S% bonds at face value for $250,c00
(4) Purchased new equipetent for $181.250 and
paid cast.
(5) Paid cash dividends of $25,000.
(6) Net income was S62.500.
What is the gain on sale of investments ?
92500
5625
6625

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