NOTE TO THE INSTRUCTOR

question 126

Essay

NOTE TO THE INSTRUCTOR:
The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities. You can, if you choose, specify that either (or even both) methods be used. The solution contains solutions for both methods.
Dauber Corporation's comparative balance sheet and income statement for last year appear below: The company declared and paid a cash dividend of $55,000 during the year. It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock.
Required:
a. Construct in good form the operating activities section of the company's statement of cash flows for the year.
b. Construct in good form the investing activities section of the company's statement of cash flows for the year.
c. Construct in good form the financing activities section of the company's statement of cash flows for the year.

---

Definitions:

Lucy V. Zehmer

A landmark legal case focusing on the binding nature of a contract, stemming from the sale of a farm over a drunken conversation.

Assent

Assent is the agreement or approval by a party to the terms of a contract or an arrangement, often indicated through a signature or explicit agreement.

Allegations

Claims or assertions made against someone, often without proof, typically in legal contexts.

Silence

The absence of sound or the state of saying nothing, often used as a communication or negotiation strategy.