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. 

Understand the concept of subjective self-awareness and self-reflexiveness.

Grasp the importance of self-efficacy in performance contexts.

Learn about William James's components of self and how they influence interpersonal relationships.

Recognize how genetic makeup can influence communication styles.

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Definitions:

Cancellation

The act of formally terminating or calling off a previously arranged event, agreement, or policy.

Destruction

The act of causing so much damage to something that it is beyond repair or no longer exists.

Obligation

A duty or commitment to act or perform in a certain way, often legally or socially binding.

Material Alteration

A significant change that modifies the nature or terms of a document or agreement, potentially affecting its legal obligations or rights.