76
3) Avatar Company uses the indirect method to prepare its statement of cash flows. During 2014, plant assets with
book value of $10,000 were sold for $14,000. Using the worksheet shown below, please enter the adjustments
needed to record gain on sale of plant assets of $4,000.
78
4) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown
below, please enter the adjustments needed to record the increases and decreases in current assets (other than cash)
and current liabilities.
80
5) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown
below, please enter the adjustments needed to record the acquisition of plant assets for $52,000.
82
6) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown
below, please enter the adjustments needed to record the following transactions:
∙ Issued common stock for $28,000.
∙ Issued new long-term notes payable for $34,000.
∙ Repaid long-term notes payable for $40,000.
84
7) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown
below, please enter the adjustments needed to record the following transactions:
∙ Purchased treasury stock for $3,000.
∙ Paid dividends of $10,000.
86
8) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the partially
completed worksheet below. Please complete the worksheet, including the data showing the net change in cash,
plus all control totals.
