Week 11: Group Discussion Question Topic: Statement of Cash Flows Graded Discussion DIRCO Odessa Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information extracted from the comparative balance sheet for the company Increase/(decrease) ($17,000) $8,000 ($12,000) ($21,000) 2017 2018 Accounts payable $35,000 $52,000 Accrued liabilities 18,000 10,000 Long-term notes payable 168,000 180,000 $221,000 $242,000 Total liabilities $39,000 $78,000 Common stock 100,000 61,000 Retained earnings 226,000 148,000 (18,500) (12,400) $307,500 $196,600 Treasury stock Total equity ($6,100) $110,900 $528,500 $438,600 $89,900 Total liabilities and equity Additional information provided: Dividend paid for 2018 amounted to $12,500. Net income for 2018 was $98,000 During 2018, the company repaid $80,000 of long-term notes payable. During 2018, the company borrowed $68,000 on a new note payable There were no stock retirements during 2018. Requirement: Using the indirect method, prepare a schedule for the financing section (only) of the statement of cash flows for December 2018 IT'S A WRAP
Week 11: Group Discussion Question Topic: Statement of Cash Flows Graded Discussion DIRCO Odessa Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information extracted from the comparative balance sheet for the company Increase/(decrease) ($17,000) $8,000 ($12,000) ($21,000) 2017 2018 Accounts payable $35,000 $52,000 Accrued liabilities 18,000 10,000 Long-term notes payable 168,000 180,000 $221,000 $242,000 Total liabilities $39,000 $78,000 Common stock 100,000 61,000 Retained earnings 226,000 148,000 (18,500) (12,400) $307,500 $196,600 Treasury stock Total equity ($6,100) $110,900 $528,500 $438,600 $89,900 Total liabilities and equity Additional information provided: Dividend paid for 2018 amounted to $12,500. Net income for 2018 was $98,000 During 2018, the company repaid $80,000 of long-term notes payable. During 2018, the company borrowed $68,000 on a new note payable There were no stock retirements during 2018. Requirement: Using the indirect method, prepare a schedule for the financing section (only) of the statement of cash flows for December 2018 IT'S A WRAP
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.12MCP
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