A company reports the following balances: What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31,2020? Assume there were no retirements of common stock or additional purchases of Treasury Stock during 2020.No dividends were declared in 2020.
A)Financing Activity of $144,000
B)Financing Activity of $161,000
C)Operating Activity $16,000
D)B and C

Question

A company reports the following balances:  What is reported on the statement of cash flows prepared with the indirect method for the year ended December 31,2020? Assume there were no retirements of common stock or additional purchases of Treasury Stock during 2020.No dividends were declared in 2020.
A)Financing Activity of $144,000 
B)Financing Activity of $161,000 
C)Operating Activity $16,000 
D)B and C

Quizplus · Accepted Answer

Increase in Financing Activities of: Common Stock ($159,000 - $15,000)+ Sale of Treasury Stock ($110,000 - $93,000)= $161,000
Increase in Operating Activities for Net Income = Retained Earnings $79,000 - Retained Earnings $63,000 = $16,000

A Company Reports the Following Balances: What Is Reported