Matthauson Company has the following comparative balance sheet data available:
Additional information:
1.The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31,2015.
2.Dividends declared and paid in 2015,$70,000.
3.Equipment with a cost of $20,000,with Accumulated Depreciation of $10,000 was sold for $3,000.
4.New equipment was purchased for cash.
The company also reports the following income statement for the year ending December 31,2015:
Using the direct method,prepare the statement of cash flows for the year ending December 31,2015.

Question

Matthauson Company has the following comparative balance sheet data available:
  Additional information:
1.The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31,2015.
2.Dividends declared and paid in 2015,$70,000.
3.Equipment with a cost of $20,000,with Accumulated Depreciation of $10,000 was sold for $3,000.
4.New equipment was purchased for cash.
The company also reports the following income statement for the year ending December 31,2015:
  Using the direct method,prepare the statement of cash flows for the year ending December 31,2015.

Quizplus · Accepted Answer

The Answer of Matthauson Company has the following comparative balance sheet data available:
  Additional information:
1.The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31,2015.
2.Dividends declared and paid in 2015,$70,000.
3.Equipment with a cost of $20,000,with Accumulated Depreciation of $10,000 was sold for $3,000.
4.New equipment was purchased for cash.
The company also reports the following income statement for the year ending December 31,2015:
  Using the direct method,prepare the statement of cash flows for the year ending December 31,2015.

Matthauson Company Has the Following Comparative Balance Sheet Data Available