Prepare cash flow statement for W company.

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Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: a. net income, $59,200 b. payment for purchase of building, $98,000 c. increase in accounts receivable, $7,400 d. proceeds from issuance of common stock, $37,100 e. increase in accounts payable, $4,500 f. proceeds from sale of land, $7,000 g. depreciation expense, $12,600 h. payment of dividends, $36,000 i. gain on sale of land, $5,300 j. decrease in inventory, $3,700 k. payment for purchase of long-term investments, $9,600 I. amortization of discount on bonds payable, $1,900 m. proceeds from issuance of note, $18,000 n. increase in deferred taxes payable, $5,000 o. equipment acquired by capital lease, $19,500 p. decrease in salaries payable, $2,300 q. beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. WARRICK COMPANY Statement of…

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Chapter 21, Problem 7E

1.

To determine

Prepare cash flow statement for W company.

2.

To determine

Explain alternative treatment for the payment of dividend under IFRS

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Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: a. net income, $59,200 b. payment for purchase of building, $98,000 c. increase in accounts receivable, $7,400 d. proceeds from issuance of common stock, $37,100 e. increase in accounts payable, $4,500 f. proceeds from sale of land, $7,000 g. depreciation expense, $12,600 h. payment of dividends, $36,000 i. gain on sale of land, $5,300 j. decrease in inventory, $3,700 k. payment for purchase of long-term investments, $9,600 I. amortization of discount on bonds payable, $1,900 m. proceeds from issuance of note, $18,000 n. increase in deferred taxes payable, $5,000 o. equipment acquired by capital lease, $19,500 p. decrease in salaries payable, $2,300 q. beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. WARRICK COMPANY Statement of…

Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: Net income, $53,600 Payment for purchase of building, $99,000 Increase in accounts receivable, $7,000 Proceeds from issuance of common stock, $37,500 Increase in accounts payable, $4,800 Proceeds from sale of land, $7,000 Depreciation expense, $17,000 Payment of dividends, $34,000 Gain on sale of land, $3,000 Decrease in inventory, $3,900 Payment for purchase of long-term investments, $8,000 Amortization of discount on bonds payable, $1,100 Proceeds from issuance of note, $17,000 Increase in deferred taxes payable, $4,300 Equipment acquired by capital lease, $16,100 Decrease in salaries payable, $2,400 Beginning cash balance, $20,300 Required 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.