The Financial Statements of Appalachian Mountain Company Appear Below

question 111

Essay

The financial statements of Appalachian Mountain Company appear below: The following additional data were provided:
1. Dividends declared and paid were $16,000.
2. During the year equipment was sold for $12,000 cash. This equipment cost $28,000 originally and had a book value of $12,000 at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.
Instructions
Prepare a statement of cash flows for Appalachian Mountain Company using the direct method.

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Definitions:

Compliance Strategy

Techniques designed to persuade or influence others to agree with one's requests, rules, or desires.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct their business with honesty and integrity.

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to agreeing to a larger request.