Prepare Cash flow statement using Indirect Method

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Reference no: EM133148457

Question - Prepare Cash flow statement using Indirect Method

Balance sheet as on 31 December 2019

2020 (in $)

2019(in $)

ASSETS



Cash

8000

5000

Accounts receivable

15000

12000

Inventory

30000

33000

Net Equipment

24000

20000

Total assets

77000

70000




Liabilities and equity



Accounts payable

21000

17000

Accrued liability

4000

5000

Common shares

35000

30000

Retained earnings

17000

18000

Total liabilities and equity

77000

70000

 

Income statement

Sales


140,000

Cost of goods sold


30,000

Gross profit


1,10,000

Operating expenses-

80000


Depreciation expense

10000


Loss on sale of equipment

5000

95,000

Net income


15000

Additional Information

Equipment costing 20,000, depreciation 12000 was sold for $3000.

Purchased equipment costing 22000 by paying 17000 cash and remaining as accounts payable.

Paid cash dividend of 21000.

Reference no: EM133148457

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