On the Basis of the Following Data for Grant Co

question 13

Essay

On the basis of the following data for Grant Co. for 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. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $56,000 and cash dividends declared of $18,000.

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Definitions:

Demographic Transition

The massive decline in birth rates that occurs once a developing country achieves higher standards of living because the perceived marginal cost of additional children begins to exceed the perceived marginal benefit.

Death Rates

The number of deaths in a particular population, scaled to the size of that population, per unit of time, typically expressed per 1000 individuals per year.

Productive Resources

Resources that are used in the production of goods and services, including land, labor, and capital.

Total Fertility Rate

The average number of children per lifetime birthed by a nation’s women.