On the Basis of the Following Data for Branch Co

question 134

Essay

On the basis of the following data for Branch Co.for the year ended December 31,2011 and the preceding year,prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities.
Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000.The stock was issued for cash and the only entries in the retained earnings account were net income of $56,000 and cash dividends declared and paid of $18,000.

---

Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, typically not related to its market value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost or current market value.

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a significant discount to its face value, which is paid at the bond's maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including both interest payments and the gain or loss incurred if purchased at a price different from its face value.