Financial Accounting

Given the provided attachment…

1. Prepare a statement of cash flows using the indirect method

a. New equipment costing $85,000 was purchased for cash during the year

b. Old equipment having an original cost of $57,500 was sold for $1,500 cash

c. Bonds matured and were paid off at face value for cash.

d.  A cash dividend of $40,350 was declared and paid during the year.

2. Further analysis reveals that accounts payable pertain to merchandise creditors.  Prepare a statement of cash flows for Cheng Inc. using the direct method.

homework.xlsx

 
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