Comparative financial statements for Parr Company follow:

Additional data for the year included:
* During the year, Parr Company sold equipment for $3,000 that had cost $15,000 and on which there was accumulated depreciation of $8,000.
* Equipment was purchased for $12,000 cash.
* Cash dividends totaling $8,000 were paid.
* Long-term investments that cost $18,000 when purchased were sold for $22,000.
* Common stock was issued for $10,000.
* Depreciation expense for the year was $5,000.
Required:
Prepare a statement of cash flows using the direct method.

Question

Comparative financial statements for Parr Company follow:  
  
Additional data for the year included:
* During the year, Parr Company sold equipment for $3,000 that had cost $15,000 and on which there was accumulated depreciation of $8,000.
* Equipment was purchased for $12,000 cash.
* Cash dividends totaling $8,000 were paid.
* Long-term investments that cost $18,000 when purchased were sold for $22,000.
* Common stock was issued for $10,000.
* Depreciation expense for the year was $5,000.
Required:
Prepare a statement of cash flows using the direct method.

Quizplus · Accepted Answer

The Answer of Comparative financial statements for Parr Company follow:  
  
Additional data for the year included:
* During the year, Parr Company sold equipment for $3,000 that had cost $15,000 and on which there was accumulated depreciation of $8,000.
* Equipment was purchased for $12,000 cash.
* Cash dividends totaling $8,000 were paid.
* Long-term investments that cost $18,000 when purchased were sold for $22,000.
* Common stock was issued for $10,000.
* Depreciation expense for the year was $5,000.
Required:
Prepare a statement of cash flows using the direct method.

Comparative Financial Statements for Parr Company Follow