You are given the following information for the ABC Corporation:
|Balance Sheet (Partial)|
|Year 3||Year 4|
|For the Year Ending December 31, Year 4|
|Income Before Taxes||$94,000|
|Income Tax Expense||$37,600|
- The ABC corporation sold an asset and recorded a loss on the sale of $8.700. The sale price was $220,000 and the asset was originally purchased for $360,000.
- Dividends paid in Year 4 were $22, 460.
- Prepare a statement of cash flows for the year ending December 31, Year 4 using the indirect method.
- What conclusions could you arrive at regarding the cash position of the firm?
- What information was provided in the statement of cash flows that was not evident if just the balance sheet and the income statement were examined?