Asked by Cameron Hutton on Jun 11, 2024
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Cannon Company has the following information for the year ending December 31,2015:
• Long-term debt of $18,000 was issued for cash.
• Cash paid for labor during 2015 amounted to $489,500.
• During the year,Cannon experienced a pension outflow of $14,000.
• Dividends of $34,000 were received.
• Cannon's cash balance at the beginning of 2015 was $975,000;at the end of 2015 the cash balance was $839,500.
• The company made an investment of $310,000 in an affiliate company.
• A lease payment of $110,000 was made on November 1,2015.There is no asset recorded in connection with the lease.
• During the year,Cannon collected $780,000 cash from customers.
• Cash paid for income taxes amounted to $56,000 for all of 2015.
• During 2015,Cannon discontinued its consumer electronics division.The business was sold resulting in a $12,000 net cash inflow.
Required:
Prepare Cannon Company's statement of cash flows for the year ending December 31,2015.
Long-term Debt
Borrowings or financial obligations that are due to be repaid more than one year from the balance sheet date.
Pension Outflow
A financial term referring to payments made to retired employees or beneficiaries from a pension fund.
Lease Payment
Regular payments made by a lessee to a lessor for the use of an asset over the lease term, according to the lease agreement.
- Inspect changes in balance sheet positions to determine the origins of cash flows, categorizing them into operating, investing, and financing activities.
- Identify the differences in cash flow categories (operating, investing, financing) across a range of transactions.
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Learning Objectives
- Inspect changes in balance sheet positions to determine the origins of cash flows, categorizing them into operating, investing, and financing activities.
- Identify the differences in cash flow categories (operating, investing, financing) across a range of transactions.
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