The following information is taken from the accounting records of the Gilford Corporation. Use this information to prepare Gilford's statement of cash flows for the year ended December 31, 2019.
(a)Plant construction costing $40,000 in cash was completed.
(b)Equipment was purchased for $20,000 in cash.
(c)Common stock was sold for $50,000 in cash.
(d)Bonds were issued for $15,000 in cash.
(e)Common stock dividends of $20,000 were paid in cash.
(f)Net income after income taxes was $35,000.
Definitions:
Profit-Maximizing Firm
A business entity that seeks to achieve the highest possible profits through its operations and strategies.
Wage Rate
The amount of money paid to a worker per unit of time (hour, day, etc.) in exchange for labor.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a resource or factor of production.
Variable Input
An economic term describing a factor of production whose quantity can vary based on the level of output or production.
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