Question

On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. The stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000.
Current Year
Prior Year
Assets
Cash
$ 170,000
$74,000
Accounts Receivable (net)
78,000
85,000
Inventories
106,500
90,000
Equipment
395,000
370,000
Accumulated Depreciation
(195,000)
(158,000)
Total assets
$ 554,500
$461,000
Liabilities and stockholders' equity
Accounts Payable (merchandise creditors)
$51,000
$50,000
Taxes Payable
2,500
5,000
Common Stock, $10 par
262,000
230,000
Retained Earnings
239,000
176,000
Total Liabilities and Stockholders' Equity
$ 554,500
$461,000
Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Breach Co.
Statement of Cash Flows
For Year Ended December 31
Cash flows from operating activities:
$
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities $
Cash flows from investing activities:
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
Net cash flow provided by financing activities
$
Cash at the beginning of the year
Cash at the end of the year $
2. Cash dividends of $72,195 were declared during the year. Cash dividends payable were $10,205 at the beginning of the year and $15,418 at the end of the year. The amount of cash for the payment of dividends during the year is
a.$82,400
b.$97,818
c.$66,982
d.$72,195

Answer 1

Answer:

2. c. 66.982

See explaination

Explanation:

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