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Statement of Cash Flows. Additional Data

question 27

Essay

Statement of Cash Flows. Statement of Cash Flows.   Additional Data: 1. Net income for the year amounted to $109,000. 2. Cash dividends were paid amounting to 4% of par value. 3. Land was sold for $120,000.  4. Sharp sold equipment, which cost $225,000 and had accumulated depreciation of $90,000, for $115,000. InstructionsPrepare a statement of cash flows using the indirect method. Additional Data:
1. Net income for the year amounted to $109,000.
2. Cash dividends were paid amounting to 4% of par value.
3. Land was sold for $120,000."
4. Sharp sold equipment, which cost $225,000 and had accumulated depreciation of $90,000, for $115,000.
InstructionsPrepare a statement of cash flows using the indirect method."

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Definitions:

Rent Expense

Costs incurred from leasing a property or space for business operations or personal use.

Rental Income

Earnings generated from leasing out property or equipment, recorded as income by the property owner or lessor.

Normal Balance

The aspect of an account, be it on the debit or credit side, designated for recording increments to the account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

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