ABC Company’s balance sheets and income statements are given below. ABC Company Balance Sheet As at December 31, 2017 and 2018 Assets 2017 $ 2018 $ Liabilities & Owner’s Equity 2017 $ 2018 $ Cash 45000 65000 Accounts payable 28500 31000 Prepaid expenses 25000 20000 Long term liabilities 95000 86000 Accounts receivable 68000 72000 Common Stock 190000 187000 Inventories 50000 70000 Retained earnings 89500 125000 Investment (current asset) 25000 30000 Other assets 15000 12000 Fixed assets (net) 175000 160000 Total Assets 403000 429000 Total Liabilities & Owner’s Equity 403000 429000 Other data during 2018: a. Depreciation expenses of $2500. b. Net sales are $590000. c. Net income after taxes $70000 Note: Company also paid dividend during 2018 at $34500. Required: Prepare cash flow statement for 2018 using indirect method Common stock is coming in financing activities and inventories is sa asset it come in operating activites
ABC Company’s
ABC Company
Balance Sheet
As at December 31, 2017 and 2018
Assets 2017 $ 2018 $ Liabilities & Owner’s Equity 2017 $ 2018 $
Cash 45000 65000 Accounts payable 28500 31000
Prepaid expenses 25000 20000 Long term liabilities 95000 86000
Accounts receivable 68000 72000 Common Stock 190000 187000
Inventories 50000 70000
Investment (current asset) 25000 30000
Other assets 15000 12000
Fixed assets (net) 175000 160000
Total Assets 403000 429000 Total Liabilities & Owner’s Equity 403000 429000
Other data during 2018:
a.
b. Net sales are $590000.
c. Net income after taxes $70000
Note: Company also paid dividend during 2018 at $34500.
Required: Prepare
Common stock is coming in financing activities and inventories is sa asset it come in operating activites
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