On the Basis of the Following Data for Larson Co

question 129

Essay

On the basis of the following data for Larson Co. for the year ending December 31, 2011 and the preceding year ended December 31, 2010, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. In addition to the balance sheet data, assume that:
Equipment costing $125,000 was purchased for cash.
Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
The stock was issued for cash.
The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

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Definitions:

Lost Workdays

Days of work missed by employees due to illness, injury, or other reasons, impacting productivity.

Relatively Low Stress

A condition of experiencing lesser degrees of stress or tension compared to a higher baseline or expectation.

Unwanted Pregnancy

A pregnancy that occurs without the intention or desire of one or both participating individuals.

New Love Interest

The beginning phase of romantic feelings or attraction towards a new individual.