The Following Information Is Available for the Ehrens Corporation

question 13

Essay

The following information is available for the Ehrens Corporation:
Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid. Management wishes to classify this under financing activities.
(5) Additional shares were issued for cash.
Prepare a complete statement of cash flows for year 2011 using the indirect method.

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Definitions:

Contact Hypothesis

A theory suggesting that interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Pettigrew

Thomas F. Pettigrew is a social psychologist known for his research on racism, intergroup contact theory, and social identity.

Recreational

Activities or experiences engaged in for pleasure, relaxation, or leisure.

Work

An activity involving mental or physical effort done in order to achieve a purpose or result, often as part of a job or profession.