Below Are the Balance Sheet and Income Statement for Anderson

question 30

Essay

Below are the balance sheet and income statement for Anderson Corporation.



Additional Information

1. In Year 1, Anderson sold machinery bought at $36, for $18, resulting in a $2 gain on income statement.
2. $810 in dividends were paid in Year 1.
3. SG&A expense includes $50 of interest expense, and amortization expense of $30.
4. Cost of good sold includes depreciation of $260.
5. Income tax expense includes deferred tax liability of $20.

a. Prepare cash flows from operations using the direct method.
b. Prepare statement of cash flows from operations using the Indirect method.

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Definitions:

Sedimentary Sequence

A chronological order of sedimentary rocks laid down in layers, reflecting the history of sediment deposition over time.

Shale

A type of fine-grained sedimentary rock that splits into thin layers, formed from mud composed of clay and other minerals.

Sandstone

A clastic sedimentary rock composed mainly of sand-sized mineral particles or rock fragments.

Rounded Pebbles

Smooth, round stones typically formed by the prolonged action of water or other forms of erosion and weathering on rocks.