Chapter 10
The Statement of Cash Flow
504
Analysis
a) Are there any concerns based on the cash flow statement?
b) Are there any concerns in the cash flow from operating activities section?
AP-16A (
2
)
2016 has been a great year for Exany Company, which managed to earn $56,000 of net
income. Therefore, the board decided to declare and pay dividends by year-end.
Based on the following information, answer the following questions.
Accounts
2016
2015
Retained Earnings
$91,000
$67,000
Common Shares
$120,000 $110,000
a) How much dividends were paid in 2016?
b) Which section of the cash flow statement is affected?
c) Assuming only the information given impacted the section of the
cash flow statement indicated in b), what is the net change in cash
for this section?
