Wil Wheaton, Kirk Enterprises' Controller, Is Preparing the Financial Statements $\bullet$

question 21

Essay

Wil Wheaton, Kirk Enterprises' controller, is preparing the financial statements for 2021 as follows. He has gathered this additional information:
$\bullet$ On December 31, 2021, Kirk sold a piece of equipment with an original cost of $25,000 for $10,000 cash.The equipment had a book value of $13,000.
$\bullet$ On February 1, 2021, Kirk issued $60,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year.
$\bullet$ On February 2, 2021, Kirk took out a ten-year $110,000 long-term loan to provide the remaining funds needed to purchase the building.
$\bullet$ On May 15, 2021, Kirk paid $162,000 for the new building.
$\bullet$ The company paid a cash dividend of $9,500.
Required:
Using the direct method, prepare Kirk Enterprises' statement of cash flows for 2021.

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Definitions:

Boil

The process of heating a liquid to the temperature at which it turns to vapor.

Ideal Refrigerant

is a theoretical concept for a substance used in refrigeration that has optimal thermodynamic and physical properties, such as being non-toxic, environmentally friendly, and highly efficient in heat absorption and release.

Non-Combustible

Materials or substances that are incapable of igniting and burning, used in various safety applications to prevent fire.

Boil Temperatures

The temperature at which a liquid turns into vapor, which varies depending on the atmospheric pressure and the liquid's properties.