Question 6 Alco Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014: Long-term notes payable, beginning balance $90,000 Long-term notes payable, ending balance 84,000 Common stock, beginning balance 2,000 Common stock, ending balance 30,000 Retained earnings, beginning balance 74,000 Retained earnings, ending balance 113,000 Treasury stock, beginning balance 5,000 Treasury stock, ending balance 8,000 • No stock was retired. • No treasury stock was sold. • During 2014, the company repaid $40,000 of long-term notes payable. • During 2014, the company borrowed $34,000 on a new note payable. • Net income for the year was $49,000. Required: Prepare financing activities section of the company’s statement of cash flows for the year ended 2014, using the indirect method?
Question 6
Alco Company uses the indirect method to prepare its statement of
refer to the following information for the year 2014:
Long-term notes payable, beginning balance $90,000
Long-term notes payable, ending balance 84,000
Common stock, beginning balance 2,000
Common stock, ending balance 30,000
Retained earnings, beginning balance 74,000
Retained earnings, ending balance 113,000
Treasury stock, ending balance 8,000
• No stock was retired.
• No treasury stock was sold.
• During 2014, the company repaid $40,000 of long-term notes payable.
• During 2014, the company borrowed $34,000 on a new note payable.
• Net income for the year was $49,000.
Required:
Prepare financing activities section of the company’s statement of cash flows for the
year ended 2014, using the indirect method?
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