The Following Are Comparative Balance Sheets and an Income Statement

question 144

Essay

The following are comparative balance sheets and an income statement for Wentworth Company. Cash dividends of $45,000 were paid in 2018.
Required:
Prepare a statement of cash flows for 2018 using the direct method.

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Definitions:

McDonaldization

A term that describes the process by which the principles of the fast-food industry, such as efficiency, predictability, and standardization, have come to dominate other sectors of society.

Rationalization

Rationalization is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.

Fast-Food Restaurants

Eateries that offer quick service, convenience, and food that is prepared in bulk in advance and kept hot or reheated to order.

World Exploration

The historical process of discovering new lands, cultures, and resources by people from one part of the world travelling to others, often leading to significant cultural exchanges and transformations.