Net income of $35,100 was closed to the retained earnings at the end of the year. Cash dividends of $13,200 were paid in December.
The statement of financial position of Cantor Industries Inc. at December 31, 2015 and
2014, is as follows:
-1.png)
The noncurrent asset, noncurrent liability, and shareholders’ equity accounts for 2015 are as follows:
-2.png)
The company realized $76,000 cash from the above sale transaction.
-3.png)
The above acquisition was completed with cash.
-4.png)
On January 26, equipment was retired. The August 11 purchase was a cash transaction.
-5.png)
On December 7, Cantor Industries issued 66,000 common shares at $1 per share.
-6.png)
Net income of $35,100 was closed to the retained earnings at the end of the year. Cash dividends of $13,200 were paid in December.
Instructions
-
Prepare a statement of cash flows using the indirect method of presenting cash flows from operating activities.
-
How does Cantor’s cash flow compare to its net income? Summarize the changes that caused the difference.