Matthauson Company Has the Following Comparative Balance Sheet Data Available

question 16

Essay

Matthauson Company has the following comparative balance sheet data available:
Additional information:
1.The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31,2019.
2.Dividends declared and paid in 2019,$70,000.
3.Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.
4.New equipment was purchased for cash.
5.No common stock was retired during 2019.
The company also reports the following income statement for the year ending December 31,2019:
Using the direct method,prepare the statement of cash flows for the year ending December 31,2019.

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Definitions:

Surplus

An excess of supply over demand, leading to a situation where goods and services exceed their consumption or utilization.

Rent Control

Government policies or laws that limit the amount landlords can charge for renting out a property, intended to make housing more affordable.

Demand Increase

This occurs when there is a rise in the quantity of a product or service that consumers are willing and able to purchase at a given price, often due to factors like increased income, changes in tastes, or population growth.

Supply Decrease

A supply decrease refers to a situation where the quantity of a good or service that producers are willing and able to sell at a given price level falls, often due to factors like increased production costs or regulatory changes.