Recent Balance Sheets of Warnick Co

question 42

Essay

Recent balance sheets of Warnick Co. appear below, together with an income statement for the latest year.

Note: Stock in Bowen Co., held as a long-term investment, was sold for $8,000 cash. Dividends of $10,500 were declared and paid during the year.
Required:
Prepare a statement of cash flows for Warnick Co. for the year ended May 31, Year2. Use the indirect method.

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Definitions:

Percent More

A comparative measure indicating how much higher one quantity is than another, expressed as a percentage.

Percent Change

The measure of the degree of change of a quantity, expressed as a percentage.

Nitrogen Fertilizer

A type of fertilizer that is high in nitrogen content, used to enhance soil fertility and stimulate plant growth.

Property Tax Rates

The rate at which property in a particular area is taxed.