Following is an incorrectly prepared statement of cash flows for Herman Corporation. Review and correct this presentation, using a direct approach. HERMAN CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X2 Cash balance at January 1, 20X2: $ 175,000 Cash receipts during 20X2: Sale of building $ 800,000 Dividend received on investments 10,000 Cash received from customers 2,350,000 Proceeds from issuing stock 1,400,000 4,560,000 Cash payments during 20X2: Purchase of inventory $ 760,000 Interest on loans 56,000 Income taxes 124,000 Repayment of long-term note payable 2,000,000 Purchase of equipment 435,000 Selling and administrative expenses 696,000 Dividends on common 175,000 (4,246,000) Cash balance at December 31, 20X2 $ 489,000 Noncash investing/financing activities: Bought land by issuing promissory note payable $ 450,00
Best writers. Best papers. Let professionals take care of your academic papersOrder a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
Since 2010, we have offered professional writing services to clients all over the world.
Over the years, our writers have gained solid experience in all academic disciplines, giving them a competitive edge to provide only first-rate academic papers.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.
Talk to us
Call us: +1 (203) -677 0547