Williamsburg Company Uses the Direct Method to Prepare Its Statement

question 126

Essay

Williamsburg Company uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ending December 31,2018:
Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000.
During 2018,the company repaid $43,000 of long-term notes payable.
During 2018,the company borrowed $34,000 on a new note payable.
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Prepare a complete statement of cash flows using the direct method.
Accrued Liabilities relate to other operating expenses.

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Definitions:

Communication Linkages

The channels and methods through which information is exchanged within an organization or between organizations.

Bureaucratic Organization

A type of organizational structure characterized by strict procedures, hierarchical relationships, and detailed rules and guidelines to ensure consistency and control.

Rational Structure

An organizational design that emphasizes a well-defined hierarchy, clear roles, and formal procedures and guidelines.

Formal Authority

Refers to the power granted to an individual or a position through organizational structures and official job descriptions.