The following income statement and balance sheet have been
prepared for Obelisk Corporation at December 31, 2020, after its first
year of operations.
Income taxes payable
Cost of goods sold
Selling and administration
Income from operations
Gain on sale of land
Income before income taxes
CHAPTER FOURTEEN/ The Statement of Cash Flows First US Edition
Obelisk assumed $100 of long‐term debt during the year for cash.
The company issued common stock for equipment, $40. Other
equipment was purchased for $120 cash. No equipment was sold
during the year.
Land costing $30 was purchased, then sold during the year for $50.
Some borrowings were repaid during the year for $20 cash.
The company declared dividends of $15 during the year.
Prepare a statement of cash flows.
Explain what the statement of cash flows tells you about Obelisk
(Appendix) Prepare a cash flow table and a revised operating
activities section of the SCF. Show that cash effects net to a $45