The Following Are Comparative Balance Sheets and an Income Statement

question 130

Essay

The following are comparative balance sheets and an income statement for Wentworth Company. Cash dividends of $45,000 were paid in 2013.
Required:
Prepare a statement of cash flows for 2013 using the direct method.

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Definitions:

Statement of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Extraordinary Gains

Unusual and infrequent gains recognized in a company's financial statements, separate from regular business operations.

Unrealized Losses

Losses on investments that have not been sold or settled and are still held by the company.

Cost of Goods Sold

Calculates the direct costs attributable to the production of the goods sold by a company, including materials and labor.