Question 6 - Cash Flow Statement (19 marks) Additional information: (1) For the year ended...
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Question 6 - Cash Flow Statement (19 marks) Additional information: (1) For the year ended December 31, 2021, net income after tax was $43,650. Depreciation for the year amounted to $29,400. Income tax expense was $12,000 (2) During 2021, old equipment with an original cost of $37,550 and accumulated depreciation $27,050 was sold at a loss of $8,400. The company purchased new equipment by paying $17,550 cash and signing a $40,000 long-term note payable. (3) During 2021, long-term investments were sold for cash at their balance sheet amounts. (4) Dividends for the year were paid in cash out of retained earnings. The directors wish dividends paid to be presented as a Financing Activity. (5) During 2021, additional shares of stock were issued for cash. Required: Prepare a statement of cash flows, with supplementary disclosures if applicable, using the indirect method. (19 marks)
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