Use the Following Information to Prepare a Statement of Cash

question 48

Essay

Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2014 if using the indirect method:
Net income for the year 2014 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000, and accounts payable decreased $7,000. Depreciation expense included in net income was $8,000.
During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank. Dividends of $6,000 were paid in cash. Preferred stock was issued to retire $7,000 of long-term notes payable.
The beginning cash balance was $22,000 and the ending balance was $32,000.

Understand the sources of equity capital for start-up companies.

Identify major stock exchanges in Canada and their significance.

Understand the relationship between money supply, demand, and interest rates in the money market.

Identify how changes in nominal and real GDP impact the money market.

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Definitions:

Ounce Of Gold

A unit of measure for weighing gold, often used in financial markets and investments to set prices or determine value.

French Francs

The former currency of France before the country adopted the euro, reflecting France's national economic history.

Price Of Pesos

The value or exchange rate of the Mexican Peso compared to another currency, typically reflecting the strength of the Peso in the foreign exchange market.

Dollars In Pesos

Dollars in Pesos typically refers to the conversion rate between the United States Dollar and the Mexican Peso, used to exchange currency between these two units.