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rado202 rado202
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A month ago
The following items were gathered from Rankin Corporation's general ledger:

Net income$26,000
Gain on sale of marketable securities3,000
Beginning cash balance18,000
Purchase of new factory equipment75,000
Proceeds from sale of marketable securities25,000
Depreciation8,000
Payment of cash dividends23,000
Decrease in accounts receivable6,000
Proceeds from issuance of common stock32,000
Increase in inventory12,000
Increase in accounts payable4,000
Decrease in accrued liabilities2,000

Required:

Using the indirect method, prepare Rankin's statement of cash flows in good form.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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adandaroozaadandarooza
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Cash flows from operating activities​​
Net income​$26,000
Gain on sale of marketable securities($3,000)​
Depreciation8,000 ​
Decrease in accounts receivable6,000 ​
Increase in inventory(12,000)​
Increase in accounts payable4,000 ​
Decrease in accrued liabilities  (2,000)  1,000
Net cash flows from operating activities​27,000
​​​
Cash flows from investing activities​​
Purchase of factory equipment(75,000)​
Proceeds from sale of marketable securities   25,000​
Net cash used by investing activities​(50,000)
​​​
Cash flows from financing activities​​
Payment of cash dividends(23,000)​
Proceeds from issuance of common stock  32,000 ​
Net cash provided from financing activities​   9,000
​​​
Net change in cash​(14,000)
Beginning cash balance​  18,000
Ending cash balance​$  4,000


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rado202 Author
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A month ago
Correct Slight Smile TY
sleinhi
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Yesterday
Helped a lot
joyceess
wrote...

2 hours ago
Thanks for your help!!
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