Unit 8 Discussion QuestionHagag Company uses the indirect method to prepare its statement of cash flows.Please refer to the following sections of the company’s comparative balance sheet andcomplete the fourth column to show the increase or decrease for each item listed.Please use the correct sign for each item to gain the full mark assigned (for example ifthe figure is negative, this must be clearly stated with brackets or with the minus sign): 2014 2013 Increase/decrease Accounts payable $ 4,000 $ 6,000 Accrued liabilities 2,000 1,000 Long-term notes payable 84,000 90,000 Total liabilities $ 90,000 $ 97,000 Common stock 30,000 2,000 Retained earnings 113,000 74,000 Treasury stock (8,000) (5,000) Total equity $135,000 $ 71,000 Total liabilities and equity $225,000 $168,000
Unit 8 Discussion Question
Hagag Company uses the indirect method to prepare its statement of cash flows.
Please refer to the following sections of the company’s comparative balance sheet and
complete the fourth column to show the increase or decrease for each item listed.
Please use the correct sign for each item to gain the full mark assigned (for example if
the figure is negative, this must be clearly stated with brackets or with the minus sign):
2014 2013 Increase/decrease
Accounts payable $ 4,000 $ 6,000
Accrued liabilities 2,000 1,000
Long-term notes payable 84,000 90,000
Total liabilities $ 90,000 $ 97,000
Common stock 30,000 2,000
Retained earnings 113,000 74,000
Total equity $135,000 $ 71,000
Total liabilities and equity $225,000 $168,000
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