The following items involve the cash flow activities of Prizzie Company for 2016: UVI Online ACC 3010 Mid-term Assessment 4 Net Income $162,000 Payment of Dividends $25,000 1,000 shares of stock issued at $20 par $20,000 Amortization Expense on patents $7,000 Plant assets acquired at a cost of $75,000 Accounts Receivable Increase of $9,000 Accounts Payable Decrease of $10,000 Salaries Payable Increase of $6,500 Beginning Cash Balance $18,000 Required: Prepare the statement of cash flows of Prizzie Company for 2016 using the indirect method.
The following items involve the cash flow activities of Prizzie Company for 2016: UVI Online ACC 3010 Mid-term Assessment 4 Net Income $162,000 Payment of Dividends $25,000 1,000 shares of stock issued at $20 par $20,000 Amortization Expense on patents $7,000 Plant assets acquired at a cost of $75,000 Accounts Receivable Increase of $9,000 Accounts Payable Decrease of $10,000 Salaries Payable Increase of $6,500 Beginning Cash Balance $18,000 Required: Prepare the statement of cash flows of Prizzie Company for 2016 using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following items involve the cash flow activities of Prizzie Company for 2016:
UVI Online ACC 3010 Mid-term Assessment 4
Net Income $162,000
Payment of Dividends $25,000
1,000 shares of stock issued at $20 par $20,000
Amortization Expense on patents $7,000
Plant assets acquired at a cost of $75,000
Accounts Receivable Increase of $9,000
Accounts Payable Decrease of $10,000
Salaries Payable Increase of $6,500
Beginning Cash Balance $18,000
Required: Prepare the statement of
indirect method.
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