Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows. ,
-A comparative balance sheet for Rocker Company appears below: Additional information:
1. Net income for the year ending December 31, 2017 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Sales for 2017 were $120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Question

Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows.  ,
-A comparative balance sheet for Rocker Company appears below:  Additional information:
1. Net income for the year ending December 31, 2017 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Sales for 2017 were $120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Quizplus · Accepted Answer

The Answer of Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows.  ,
-A comparative balance sheet for Rocker Company appears below:  Additional information:
1. Net income for the year ending December 31, 2017 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Sales for 2017 were $120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Assuming a Statement of Cash Flows Is Prepared, Indicate the Reporting