Use the Following Information to Prepare a Statement of Cash

question 5

Essay

Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2016. Use the indirect method for the operating activities section of the statement.
Information:
Net income for the year 2016 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000, and accounts payable decreased $7,000. Depreciation expense included in net income was $8,000.
During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank. Dividends of $6,000 were paid in cash. Preferred stock was issued to retire $7,000 of long-term notes payable.
The beginning cash balance was $22,000 and the ending balance was $32,000.

Comprehend the concept of ultra vires acts within corporate actions.

Identify the unique attributes of closely held corporations and strategies to mitigate majority shareholder dominance.

Understand the procedural steps and documents necessary for incorporation.

Recognize the legal implications of misrepresentation or errors in corporate documentation.

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Definitions:

Accommodating Conflict-Management

A conflict resolution method where one party gives in to the wishes or demands of another to maintain harmony.

Smoothing Over Disagreements

The act of attempting to resolve conflicts or differences in opinion in a calm and amicable manner.

Collaborating Style

A conflict resolution strategy that involves working together with all parties to find a mutually beneficial solution.

Cooperative

Describes actions or processes that are done together with others in a team or group setting, emphasizing collaboration and mutual benefit.