60.1K
Verified Solution
Link Copied!
Luo Inc. had the following statement of financial position at December 31, 2014 (amounts in thousands).
| LUO INC. Statement of Financial Position December 31, 2014 |
| Investments | 32,000 | Share capitalordinary | 100,000 |
| Plant assets (net) | 81,000 | Retained earnings | 23,200 |
| Land | 40,000 | Bonds payable | 41,000 |
| Accounts receivable | 21,200 | Accounts payable | 30,000 |
| Cash | 20,000 | | |
| | 194,200 | | 194,200 |
During 2015, the following occurred.
1. Luo liquidated its non-trading equity investment portfolio at a loss of 5,000.
2. A tract of land was purchased for 38,000.
3. An additional 30,000 in ordinary shares were issued at par.
4. Dividends totaling 10,000 were declared and paid to shareholders.
5. Net income for 2015 was 35,000, including 12,000 in depreciation expense.
6. Land was purchased through the issuance of 30,000 in additional bonds.
7. At December 31, 2015, Cash was 70,200, Accounts Receivable was 42,000, and Accounts Payable was 40,000.
Instructions
Prepare a statement of cash flows for the year 2015 for Luo.
Answer & Explanation
Solved by verified expert
