Question

Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $71,600 cash. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. (2) Compute the company’s cash flow on total assets ratio for its fiscal year 2019.

Answer 1

The cash flow statement guides a company in understanding its true use and source of cash funding.

It helps breakdown the Net income and give confidence or allow an analyst/investor heighten his risk profile of the business returns on Invested funds.

The attached documents show details of the full questions which are missing from the submitted question and the Cash flow statement .