Use the Following Financial Statements and Additional Information to (1)prepare

question 105

Essay

Use the following financial statements and additional information to (1)prepare a complete statement of cash flows for the year ended December 31,Year 2.The cash provided or used by operating activities should be reported using the direct method,and (2)compute the company's cash flow on total assets ratio for Year 2.
Additional Information
a.A $20,000 note payable is retired at its carrying value in exchange for cash.
b.The only changes affecting retained earnings are net income and cash dividends paid.
c.New equipment is acquired for $120,000 cash.
d.Received cash for the sale of equipment that had cost $85,000,yielding a gain of $4,700.
e.Prepaid expenses relate to Other Expenses on the income statement.
f.All purchases and sales of merchandise inventory are on credit.

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Definitions:

Managing Transitions

The process of helping individuals, groups, or organizations move from one state, condition, or phase to another, often discussed in the context of life changes, corporate restructuring, or health care.

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The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Turning Point

A moment or event that signifies a significant change or shift in direction or focus.

Critical Point

A pivotal condition or moment at which a significant change occurs.