The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows: Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter 16, Problem 5PA
Textbook Problem

The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:

Chapter 16, Problem 5PA, The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

  1.        a.            The investments were sold for $175,000 cash.
  2.       b.            Equipment and land were acquired for cash.
  3.        c.            There were no disposals of equipment during the year.
  4.       d.            The common stock was issued for cash.
  5.        e.            There was a $90,000 debit to Retained Earnings for cash dividends declared.

Instructions

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

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Chapter 16 Solutions

Financial Accounting
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