Consider each of the following independent situations.
a. The retained earnings statement of Lee Corporation shows dividends of $68,000, while net income for the year was $75,000.
b. The statement of cash flows for Steele Corporation shows that cash provided by operating activities was $10,000, cash used in investing activities was $110,000, and cash provided by financing activities was $130,000.
Instructions
For each company, provide a brief discussion interpreting these financial data. For example, you might discuss the company’s financial health or its apparent growth philosophy. Identify financial statement components and prepare income statement.
