Reference no: EM132505107

Fool's Paradise Ltd had cash and cash equivalents at 1 January 2019 of $400,000. The transactions of Fool's Paradise Ltd for the year to 31 December 2019 are as follows:

1. Borrowed $850,000 with a 9-month loan payable
2. Received $6,340,000 cash for customer accounts
3. Sold for $360,000 cash a plant asset with a carrying amount of $180,000
4. Issued ordinary shares for $480,000 cash
5. Purchased a plant asset for $650,000; $237,500 in cash and $412,500 in loan
6. Exchanged 60,000 shares for land with a fair value of $1,000,000
7. Received a $350,000 dividend in cash
8. Received $25,000 interest from term deposit
9. Invested $500,000 cash on the short-term money market
10. Paid fixed-term loan principal of $900,000 and interest of $90,000
11. Cash payments for supplier's accounts $6,300,000
12. Dividend paid during the period $200,000

• Wages expense shown in the income statement is $75,000. At the end of the year the balance sheet shows prepaid Wages expense of $65,000. There was a prepaid Wages expense of $35,000 at the beginning of the year.

Required:

Question 1: Prepare the statement of cash flows of Fool's Paradise Ltd for the year to 31 December 2019.