Use the Following Financial Statements and Additional Information to (1)

question 134

Essay

Use the following financial statements and additional information to (1) prepare a complete statement of cash flows for the year ended December 31, 2013. The cash provided or used by operating activities should be reported using the direct method, and (2) compute the company's cash flow on total assets ratio for 2017. Additional Information:
a. A $20,000 note payable is retired at its carrying value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $120,000 cash.
d. Received cash for the sale of equipment that had cost $85,000, yielding a gain of $4,700.
e. Prepaid expenses relate to Other Expenses on the income statement.
f. All purchases and sales of merchandise inventory are on credit.

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Definitions:

Physical Environment

The external setting or conditions in which an organization operates, including all living and non-living things that affect its operations.

Meeting Room

A designated space used for gatherings, conferences, or discussions within an organization.

Win-Win Conflict Resolution

A conflict resolution approach where both parties involved come to a mutually beneficial agreement and satisfaction.

Evaluating Effectiveness

The process of assessing how well a project, program, or action has achieved its goals and objectives.