Solution-Prepare a statement of cash flows for the fiscal

Prepare a statement of cash flows for the fiscal year

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Reference no: EM133078948

Question - Crystal Ltd. has prepared the following comparative balance sheets at December 31, 2020 and 2021. Crystal prepares its financial statements under IFRS.

	2021	2020
Cash	$148,500	$76,500
Accounts receivable	79,500	58,500
Inventory	75,000	90,000
Prepaid expenses	9,000	13,500
Property, plant & equipment	630,000	525,000
Accumulated depreciation	-225,000	-187,500
Goodwill	76,500	87,000
	$793,500	$663,000
Accounts payable	$76,500	$84,000
Accrued liabilities	30,000	21,000
Mortgage payable	0	225,000
Preferred shares	322,500	0
Common shares	300,000	300,000
Retained earnings	64,500	33,000
	$793,500	$663,000

The condensed income statement for 2021 is as follows:

Sales $990,000

Cost of sales 544,500

Gross profit 445,500

Operating expenses 345,000

Net income $100,500

Depreciation expense and a charge for impairment of goodwill have both been included in operating expenses.

Required - From the information above, prepare a statement of cash flows (indirect method) for the fiscal year 2021.

Reference no: EM133078948

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Prepare a statement of cash flows for the fiscal year

Reference no: EM133078948

Reference no: EM133078948

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