Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the...
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Accounting
Dani Trading Inc. (DTI) is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash
$
97,200
$
116,700
Accounts receivable
77,600
83,600
Inventory
104,200
95,000
Property, plant and equipment
276,000
266,000
Less accumulated depreciation
(92,000
)
(66,500
)
Total assets
$
463,000
$
494,800
Accounts payable
$
60,800
$
108,000
Income taxes payable
47,200
62,800
Bonds payable
114,000
95,000
Common stock
133,000
114,000
Retained earnings
108,000
115,000
Total liabilities and stockholders equity
$
463,000
$
494,800
During the year, DTI paid a $11,400 cash dividend and it sold a piece of equipment for $5,700 that had originally cost $13,200 and had accumulated depreciation of $8,800. The company did not retire any bonds or repurchase any of its own common stock during the year.
Required:
What net income would the company include on its statement of cash flows?
Answer & Explanation
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