Redbird Company Uses the Indirect Method to Prepare Its Statement

question 56

Essay

Redbird Company uses the indirect method to prepare its statement of cash flows.Using the following information,complete the worksheet for the year ended December 31,2018.
- Net Income for the year ended December 31,2018 was $49,000
- Depreciation expense for 2018 was $12,000
- During 2018,plant assets with a book value of $10,000 (cost $10,000 and accumulated depreciation $0)were sold for $14,000
- Plant assets were acquired for $52,000 cash
- Issued common stock for $28,000
- Issued long-term notes payable for $34,000
- Repaid long-term notes payable for $40,000
- Purchased treasury stock for 3,000
- Paid dividends of $10,000

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Definitions:

Renin

An enzyme secreted by the kidneys that plays a key role in the renin-angiotensin system, regulating blood pressure and fluid balance in the body.

Extracellular Fluid Osmolality

A measurement of the solute concentration in the extracellular fluid, crucial for maintaining the balance of water and solutes within the body.

Water Reabsorption

The process by which water is reabsorbed back into the bloodstream from the kidneys or other parts of the body.

Atrial Natriuretic Hormone

A hormone produced by the heart's atria that regulates fluid and electrolyte homoeostasis, and reduces blood pressure.