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Unformatted text preview: 43,000 33,000 Retained earnings 20,750 5,000 $ 107,750 $ 91,000 Additional data related to 2008 are as follows: 1. Equipment that cost $11,000 and was 40% amortized at the time of disposal was sold for $2,500. 2. Common shares were issued to pay $10,000 of the long-term note payable. 3. Cash dividends paid were $6,000. Page 2 of 2 4. On January 1, 2008, a flood destroyed the building. Insurance proceeds on the building were $33,000 (net of $4,000 taxes). Flood damage is unusual and infrequent in that part of the country. 5. Long-term investments (available-for-sale) were sold at $2,500 above their cost. The fair value of these investments at December 31, 2007, equaled their original cost. 6. Cash of $15,000 was paid to acquire equipment. 7. A long-term note for $16,000 was issued in exchange for equipment. 8. Interest of $2,000 and income taxes of $5,000 were paid in cash. Use the indirect method to analyze the above information and prepare a statement of cash flows for Davis Inc. Required:...
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This note was uploaded on 10/16/2010 for the course ACCO Acco 320 taught by Professor Luohe during the Spring '10 term at Concordia Canada.
- Spring '10