Redbird Company Uses the Indirect Method to Prepare Its Statement

question 170

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
Redbird Company

---

Definitions:

Reactive

Characterized by actions taken in response to external situations or events rather than initiating change proactively.

Competition Driven

A market situation where businesses are highly motivated to outperform their rivals in order to gain greater market share and customer loyalty.

Competitive Advantages

Attributes or circumstances that allow a company or country to produce goods or services at a lower price or in a more desirable manner than competitors.

Previously Introduced

Refers to items or concepts that have been mentioned or brought to attention earlier in a discussion or document.