70.2K

Verified Solution

Link Copied!

Scroll down to complete all parts of this task. Weager Co. is in the process of preparing a cash flow statement for the year ended December 31, year 2. based on the transactions below using the indirect method. In the table below, click on the indicated.cells under the appropriate classifications and enter the amounts for the transactions. Enter the amount as either a positive or negative value to indicate its effect on the cash flow statement classification, e., either an increase or , (decrease) to cash flow. If an amount is zero, enter a zero (). Ig More any income tax considerations when completing this task. Weager Co. For the Year Ended December 31, Year 2 Cash Flow Statement Worksheet Operating Financing Investing Supplementary Transaction Activities Activities Activities Disclosure 11. On July 1, year 2, the company sold a tract of land for $40,000 cash. The land was purchased in year 1 for $33,000 and at the time of sale was assessed at $52,000. 2. On May 1, year 2, the company granted 3,000 stock options to its president, vesting equally during the next three years. Each option entitles the president to purchase a share of the company's no-par common stock at $8 per share. The fair value of the options was determined to be $27,000 on the date of grant. 3. The company sold merchandise to a significant customer in November of year 1 and received cash of $5,000 and a note for $60,000. payable in 95 days. The note was paid when due 4. In September, year 2, the company purchased land and a building. The purchase price consisted of $20,000 cash and 6,000 shares of the company's no-par common stock. The fair |value of the stock on the closing date of this transaction was $5 per share. 5. On December 15, year 2. the company entered into a $1,000,000 5-year unsecured term and revolving credit agreement to support its working capital needs. The company borrowed $200,000 under this agreement and such amount was outstanding at December 31. 6. On December 20, year 2. the company paid a cash dividend of $.05 per share to its stockholders. On the record date of the dividend there were 866,000 shares outstanding

Answer & Explanation Solved by verified expert

See Answer