The statement of income for the year ended December 31, 2016, is as follows:
- Using the information from Problem 16-4A, prepare a statement of cash flows for Rucker Photography Products Inc. using the direct method of presenting cash flows from operating activities.
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How does Rucker’s cash flow compare to its net income? Summarize the changes that caused the difference.
In Problem 16-4A
The statement of financial position of Rucker Photography Products Inc. for December 31, 2016 and 2015 is as follows:
The statement of income for the year ended December 31, 2016, is as follows:
The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $88,000 cash.
d. The common shares were issued for cash.
e. There was a $10,000 debit to Retained Earnings for cash dividends declared.
f. The income taxes expense was paid in cash.