sheet and income statement of Linderman Garden Supply, Inc., follow ?( click the
ID: 2391554 • Letter: S
Question
sheet and income statement of Linderman Garden Supply, Inc., follow ?( click the icon to view the comparative balance sheet. ?( (Click the icon to view the income statement.) n Garden Supply, Inc., had no noncash investing and and or t, no issuance of notes payable, no retirement of stock, and no treasury stock transactions 1. Prepare the 2016 statement of cash flows, formatting operating activities by the indirect method 2. How will what you learned in this problem help you evaluate an investment in Linderman Garden Supply, Inc.? 1. Prepare the 2016 statement of cash flows, formatting operating activities by the indirect method.Explanation / Answer
Answer 1.
Dividend paid = Net Income - Increase in Retained Earnings
Dividend paid = $69,400 - $37,600
Dividend paid = $31,800
Equipment purchased = Increase in Equipment + Depreciation Expense
Equipment purchased = $5,700 + $4,700
Equipment purchased = $10,400
Answer 2.
We will be able to evaluate an investment in Linderman with this information. As we can predict future cash flows with the help of this period cash flows.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.