Partial Balance Sheets for ABC Company and Additional Information Are

question 5

Essay

Partial balance sheets for ABC Company and additional information are provided below.
Additional information for 2009:
July 1: Issued 8,000 shares of common stock for cash.
July 1: Purchased new equipment for cash.
December 31: Paid cash dividends of $20,000.
Required:
Prepare the financing activities section of the statement of cash flows for 2009.

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Definitions:

Disbursement of Funds

The act of paying out or distributing money, such as dividends to shareholders or expenditures to fulfill obligations or purchase assets.

Collateral Position

The assets that a borrower offers to a lender as security for the repayment of a loan, potentially forfeited in case of default.

Disbursement of Funds

The act of paying out money from a fund or account to cover expenses or investments.

Collateral Position

Collateral is property or assets that a borrower offers to a lender as security for a loan, which can be taken by the lender if the borrower fails to repay.