Checker s Games Co. reported the following items on its comparative balance sheet for 2008: 2008 2007 Accounts payable $200,000 $175,000 Dividends payable 10,00

Checker’s Games Co. reported the following items on its comparative balance sheet for 2008:

2008 2007

Accounts payable $200,000 $175,000

Dividends payable 10,000 0

Notes payable 280,000 240,000

Common stock 315,000 290,000

Additional paid-in capital 120,000 100,000

Land 175,000 150,000

Goodwill 45,000 75,000

Additional information for 2008:

1. A $70,000 note payable was issued for cash.

2. Interest expense totaled $15,000 for the year of which $13,500 was paid in cash.

3. Stock was issued for cash (the transaction involved common stock).

4. A note payable for $30,000 was repaid.

5. Dividends of $50,000 were declared of which $40,000 have been paid.

Required: Prepare the financing section of the cash flow statement in good form for Checker’s Games Co

Leave a Comment