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c0 Prepare a statement of cash flows using the indirect method LO4, 5, 6 he balance sheets for the Intelligence Company are as follows: Comparative balance sheets as at 30 June 2022 2021 Cash and cash equivalents $ 65 000 $ 45 000 Accounts receivable 50 000 55 000 Inventory 125 000 175000 Property, plant and equipment 930 000 745 000 Accumulated depreciation (270 000) (200 000)

c0 Prepare a statement of cash flows using the indirect method LO4, 5, 6 he balance sheets for the Intelligence Company are as follows: Comparative balance sheets as at 30 June 2022 2021 Cash and cash equivalents $ 65 000 $ 45 000 Accounts receivable 50 000 55 000 Inventory 125 000 175000 Property, plant and equipment 930 000 745 000 Accumulated depreciation (270 000) (200 000)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please prepare the statement of cash flows using the indirect method (not the direct method as noted in the question).

LO4, 5, 6 20 Prepare a statement of cash flows using the indirect method The balance sheets for the Intelligence Company are as follows: Comparative balance sheets as at 30 June 2022 2021 Cash and cash equivalents $ 65000 $ 45 000 Accounts receivable 50 000 55 000 Inventory 125 000 175000 Property, plant and equipment 930 000 745 000 Accumulated depreciation (270 000) (200 000)
Transcribed Image Text:LO4, 5, 6 20 Prepare a statement of cash flows using the indirect method The balance sheets for the Intelligence Company are as follows: Comparative balance sheets as at 30 June 2022 2021 Cash and cash equivalents $ 65000 $ 45 000 Accounts receivable 50 000 55 000 Inventory 125 000 175000 Property, plant and equipment 930 000 745 000 Accumulated depreciation (270 000) (200 000)
Total assets $900 000 $820 000 Accounts payable $ 110 000 $105 000 Unsecured syndicated bank loan (long-term) 180 000 200 000 Total liabilities $290 000 $305 000 Ordinary shares $350 000 $280 000 Retained earnings 260 000 235 000 Total shareholders' equity 610 000 515000 Total liabilities and shareholders' equity $900 000 $820 000 The following additional information is available: i Profits after tax for 2022 were $50000. ii Cash dividends of $25000 were paid during the year. A portion of unsecured syndicated bank loan matured and was repaid during the year. iii iv Ordinary shares were issued for cash. Property and equipment were purchased for cash. No non-current assets were sold during the year. The change in accumulated depreciation is a result of depreciation expense. V vi REQUIRED Prepare a statement of cash flows for the year using the direct method for the operating activities section and prepare a reconciliation of profits after tax to cash flow from operations.
Transcribed Image Text:Total assets $900 000 $820 000 Accounts payable $ 110 000 $105 000 Unsecured syndicated bank loan (long-term) 180 000 200 000 Total liabilities $290 000 $305 000 Ordinary shares $350 000 $280 000 Retained earnings 260 000 235 000 Total shareholders' equity 610 000 515000 Total liabilities and shareholders' equity $900 000 $820 000 The following additional information is available: i Profits after tax for 2022 were $50000. ii Cash dividends of $25000 were paid during the year. A portion of unsecured syndicated bank loan matured and was repaid during the year. iii iv Ordinary shares were issued for cash. Property and equipment were purchased for cash. No non-current assets were sold during the year. The change in accumulated depreciation is a result of depreciation expense. V vi REQUIRED Prepare a statement of cash flows for the year using the direct method for the operating activities section and prepare a reconciliation of profits after tax to cash flow from operations.
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