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A Company Reports the Following Balances: What Is Reported

question 44

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A company reports the following balances: A company reports the following balances:   What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31, 2018? Assume there were no retirements of common stock during 2018. No dividends were declared in 2018. A) Financing Activity: Sale of Common Stock, $141,000 B) Financing Activity: Sale of Common Stock, $150,000 C) Operating Activity: Net Income $10,000 D) B and C What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31, 2018? Assume there were no retirements of common stock during 2018. No dividends were declared in 2018.


Definitions:

Sales Revenues

The total income generated from the sale of goods and services by a company before any costs or expenses are deducted.

Cash Operating Expenses

Expenses incurred during the operational activities of a business that affect cash flow, such as paying salaries and purchasing materials.

Simple Rate Of Return

A financial ratio used to calculate the profit an investment will generate, expressed as a percentage of the initial cost.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes.

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