The records of Cambria Corporation showed the following information in the balance sheet accounts at December 31, 2017 and 2016.
Additional information for 2017:
|
a. |
Net income was $24; there were no income taxes. |
|
b. |
Cash dividends of $11 were paid. |
|
c. |
Depreciation expense was $3. |
|
d. |
Common shares were given in exchange for equipment costing $30. |
|
e. |
A building was purchased for $25; $16 was paid in cash and a noncurrent loan was assumed for the difference. |
|
f. |
Land purchased for $10 was sold for a $6 gain. The gain is included in net income. |
|
g. |
Short-term investments will be sold in 30 days for a known amount. |
Required:
- Explain the appropriate treatment for items d. and e. above.
- Prepare a cash flow table.
- Prepare a statement of cash flows.
- Explain what the statement of cash flows tells you about the Cambria Corporation.
- 1315 reads
