The Comparative Balance Sheet of ConnieJo Company, for December 31 $\$ 39,000$

question 20

Essay

The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form: ​
The income statement for the current year is as follows: ​
Additional data for the current year are as follows: (a) Fully depreci ated equipment costing $\$ 39,000$ was scrapped, no salvage, and equipment was purchased for $\$ 157,000$ .
(b) Bonds payable for $\$ 100,000$ were retired by payment at their face amount.
(c) 5,000 shares of common stock were issued at $\$ 15$ for cash.
(d) Cash dividends declared were paid $\$ 41,400$ .
(e) All sales are on account. ​
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

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Definitions:

Aggregate Supply Curve

A graphical representation that shows the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living and inflation rates.

Explicit Resource Price

The monetary value that is directly paid for the use of a resource or asset, such as wages for labor or rent for land.

Aggregate Supply Curve

A graphical representation showing the relationship between the total supply of goods and services produced in an economy and the price level.