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 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 38P
Related questions
Question
Transcribed Image Text:QUESTION 7
Presented below are the comparative December
31 financial statemenes for Dubai Industries, Inc.
tin s Millions). Prepare a statement of cash flows
for December 31, Year 2 uning the indirect
method.
Dubai Iedustries, Inc
Balance Sheets
A: December 31, Year 2 and
Year 1
Year 2
Year1
Cash
S96,719
Accounts Recetvable
100,000
85.313
Inventory
206.250
181.250
Prepaid Imsurance
Land. Buildings, and
Equipment
2.500
1.562.300
1406.250
Accumulated
Depreciation
(762,500)
(715.000
Investments
10.20
Total Assets
1225 219
Accounts Payable
Salartes Piryahle
25.000
3025
Notes Payable
31.250
第750
Transcribed Image Text: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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