Comparative financial statements for Tomtric Company follow:
Additional data on activities during 2017 are as follows:
• During 2017,Tomtric Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of $8,000.
• New equipment was purchased for $12,000 cash.
• Cash dividends totaling $8,000 were paid.
• Long-term investments that had cost $18,000 when purchased were sold for $18,000.
• Common stock was issued for $10,000.
Required:
a.Prepare the operating activities section of the statement of cash flows using the indirect method.
b.Prepare the operating activities section of the statement of cash flows using the direct method.
c.Prepare the investing activities section of the statement of cash flows.
d.Prepare the financing activities section of the statement of cash flows.

Question

Comparative financial statements for Tomtric Company follow:
   Additional data on activities during 2017 are as follows:
• During 2017,Tomtric Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of $8,000.
• New equipment was purchased for $12,000 cash.
• Cash dividends totaling $8,000 were paid.
• Long-term investments that had cost $18,000 when purchased were sold for $18,000.
• Common stock was issued for $10,000.
Required:
a.Prepare the operating activities section of the statement of cash flows using the indirect method.
b.Prepare the operating activities section of the statement of cash flows using the direct method.
c.Prepare the investing activities section of the statement of cash flows.
d.Prepare the financing activities section of the statement of cash flows.

Quizplus · Accepted Answer

The Answer of Comparative financial statements for Tomtric Company follow:
   Additional data on activities during 2017 are as follows:
• During 2017,Tomtric Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of $8,000.
• New equipment was purchased for $12,000 cash.
• Cash dividends totaling $8,000 were paid.
• Long-term investments that had cost $18,000 when purchased were sold for $18,000.
• Common stock was issued for $10,000.
Required:
a.Prepare the operating activities section of the statement of cash flows using the indirect method.
b.Prepare the operating activities section of the statement of cash flows using the direct method.
c.Prepare the investing activities section of the statement of cash flows.
d.Prepare the financing activities section of the statement of cash flows.

Comparative Financial Statements for Tomtric Company Follow