Asked by kylie andrews on Jul 07, 2024
Verified
The following information is available for the Eldridge Company:
Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old machinery with an original cost of $45,060 was sold for $2,520 cash.
(3) New machinery was purchased for $81,060 cash.
(4) Cash dividends of $40,320 were paid. Management wishes to classify this under financing activities.
(5) Additional shares were issued for cash.
Prepare a complete statement of cash flows for year 2011 using the indirect method.
Cash Dividends
Distributions of a company's earnings to its shareholders in the form of cash.
Operating Activities
Business actions that relate directly to the production and delivery of goods and services, central to generating revenue.
- Prepare a complete statement of cash flows for a given period using the indirect method.
Verified Answer
PS
Pooja SehgalJul 10, 2024
Final Answer :
(a) Received from sales of long-term investments: $67,680 - $67,080 = $600
(b) Received from share issuance:
Increase in ordinary shares ($140,400 - $115,200) $25,200
Increase in share premium ($15,600 - $10,800) 4,800
Total received from share issuance $30,000
(c) Paid to retire bonds: $79,200 - $58,500 = $20,700
(b) Received from share issuance:
Increase in ordinary shares ($140,400 - $115,200) $25,200
Increase in share premium ($15,600 - $10,800) 4,800
Total received from share issuance $30,000
(c) Paid to retire bonds: $79,200 - $58,500 = $20,700
Learning Objectives
- Prepare a complete statement of cash flows for a given period using the indirect method.
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