The following statement was prepared by Maloney Corporation’s accountant.The following additional information relating to Maloney Corporation is available for the year ended September 30, 2014.1. Salaries and wages expense attributable to stock option plans was $25,000 for the year.2. Expenditures for property, plant, and equipment ….. $250,000Proceeds from retirements of property, plant, and equipment . 36,000Net expenditures ………………. $214,0003. A stock dividend of 10,000 shares of Maloney Corporation common stock was distributed to common stockholders on April 1, 2014, when the per share market price was $7 and par value was $1.4. On July 1, 2014, when its market price was $6 per share, 16,000 shares of Maloney Corporation common stock were issued in exchange for 4,000 shares of preferred stock.5. Depreciation expense ….. $ 65,000Depletion expense …… 5,000 $ 70,0006. Increase in long-term debt . $620,000Less: Redemption of debt .. 441,000Net increase ……. $179,000Instructions(a) In general, what are the objectives of a statement of the type shown above for Maloney Corporation? Explain.(b) Identify the weaknesses in the form and format of Maloney Corporation’s statement of cash flows without reference to the additional information. (Assume adoption of the indirect method.)(c) For each of the six items of additional information for the statement of cash flows, indicate the preferable treatment and explain why the suggested treatment ispreferable.
The following statement was prepared by Maloney Corporation s ac