Use the Following Information to Prepare a Statement of Cash

question 56

Essay

Use the following information to prepare a statement of cash flows (indirect method)for Sink Industries for the year ended December 31,2010:
Net income for the year 2010 was $5,000.Accounts receivable decreased $2,000,while inventories increased $4,000,and accounts payable decreased $7,000.Depreciation expense included in net income was $8,000.
During the year,a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank.Dividends of $6,000 were paid in cash.Preferred stock was issued to retire $7,000 of long-term notes payable.
The beginning cash balance was $10,000 and the ending balance was $20,000. 

---

Definitions:

Employee Retention

Strategies and practices employed by organizations to prevent valuable employees from leaving their jobs, focusing on satisfaction, engagement, and loyalty.

Outsourcing Expenses

Costs associated with contracting external organizations to perform certain business functions or processes outside the company.

Health Benefits

refer to the positive effects or outcomes on physical, mental, or social well-being that can result from activities, practices, or policies, such as exercise, healthy eating, or healthcare provision.

Triple Bottom Line

A sustainability framework that evaluates a company's performance based on three critical areas: social responsibility, environmental impact, and financial profitability.