A Comparative Balance Sheet for Debits Corporation Is Presented Below

question 10

Essay

A comparative balance sheet for Debits Corporation is presented below:
Additional information:
1. Loss for 2014 is $20,000.
2. Cash dividends of $4,000 were declared and paid in 2014.
3. Land was sold for cash at a loss of $10,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $12,000 of bonds were retired during the year at carrying value.
6. Equipment was acquired for common shares. The fair value of the equipment at the time of the exchange was $25,000.
Instructions
Prepare a cash flow statement for the year ended 2014, using the indirect method.

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Definitions:

Management

The process of dealing with or controlling things or people, often within a business or organization.

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Frederick Taylor

A mechanical engineer who is considered the father of scientific management, focusing on improving economic efficiency and labor productivity through systematic study.

Organizational Behaviour

The study of both group and individual performance and activity within an organization, and how these behaviours can be improved through leadership and control.