QUESTION 2Presented below are the comparative December31 financial statements for Dubai Industries, Inc.(in S Milions). Prepare a statement of cash floresfor December 31, Year 2 using the indirectmethod.Dubai tnduitries, IneBalance SheetsA December 31, Vear 2 andYear 1Year 1$28.094Year2Cash$96.719Accounts Recelvable100.00085,313Inventory206.250181,250Prepaid insuranceLand, Buildings, and18TS2,500EquipmentAccumulated1.362.5001,406.250Depreciation(762.500)(715.000)Investments193751062501.224 21931.05 24Total AssetsAccounts Payable195.425Salartes Payable25,00030,625 Salaries Payable25,00030,625Notes Payable31,25093,750Bonds Payable250,000Common Seock375,000375,000447 541224219Retained Earnings4100441.025 2Additional information for Year 2(1) Sold vailable for sale securities costings87S for 192.5002) Equipmeet costing $25,000 with a book valoeof S6.250 was sold for S7.500(3) Bssoed bonds at face value for $250,000.(4) Parchased new eqpaipesent for $181,250 andpaid cash(5) Paid cash dividends of s25,000.6) Net incoeme was 562.500.What is the net cash provided or used byoperating activities?13225(13225)90413(90413)

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

QUESTION 2 Prerated below are the comparative December 31 financial statements for Dubai Industries, Inc in S Mlion. Prepare a statement of cash flows for December , Vear 2 ng the indirect method. Dubai Industries, tne Balance Sheets At December 1, Vear 2 and Tear 1 Year 2 Ye1 Cash 59.719 Accounts Recetvabe 100.000 Ivennery 20.250 181250 Prepaid tnurance LATS 2.500 Land. Buldings, and Equapenent Accumulated 1342.500 1.400 Depreciation Investments 1925 1020 Total Assets Accounts Payable 95.425 Salartes Pyable 25.000 30625

QUESTION 2 Prerated below are the comparative December 31 financial statements for Dubai Industries, Inc in S Mlion. Prepare a statement of cash flows for December , Vear 2 ng the indirect method. Dubai Industries, tne Balance Sheets At December 1, Vear 2 and Tear 1 Year 2 Ye1 Cash 59.719 Accounts Recetvabe 100.000 Ivennery 20.250 181250 Prepaid tnurance LATS 2.500 Land. Buldings, and Equapenent Accumulated 1342.500 1.400 Depreciation Investments 1925 1020 Total Assets Accounts Payable 95.425 Salartes Pyable 25.000 30625

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process

Section: Chapter Questions

Problem 37P

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