(Solution) - Comparative balance sheet accounts of Secada Inc are presented -(2025 Original AI-Free Solution)

Paper Details

Comparative balance sheet accounts of Secada Inc. are presented below.

Additional data (ignoring taxes):
1. Net income for the year was $42,500.
2. Cash dividends declared during the year were $21,125.
3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized.
4. Investments that cost $20,000 were sold during the year for $23,750.
5. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200. Secada?s 2008 income statement follows (ignoring taxes).



Instructions
Prepare a statement of cash flows using the indirectmethod.