U7A7 Assignment 1 Contest Company

Required:

• Create a cash flow statement for Contest Company, for the year ended December 31, 2015, on the spreadsheet provided.
• Comment on the company's financial performance with respect to major items affecting cash.

Additional Information:

• From the Income Statement, there is a net income of $51 000 in 2015.
• Equipment was amortized for $9 000 in 2015.
• New equipment costing $21 000 was purchased.
• An old, fully amortized piece of equipment that cost $3 000 was discarded; its cost and accumulated amortization were removed from the accounts.
• 1 500 shares of stock were sold and issued at $12 per share.
• The company declared $30 000 of cash dividends during the year and paid $21 000 of dividends