Please prepare the statement of cash flows using the indirect method (not the direct method as noted in the question). LO4, 5, 620 Prepare a statement of cash flowsusing the indirect methodThe balance sheets for the Intelligence Company are as follows:Comparative balance sheets as at 30 June20222021Cash and cash equivalents$ 65000$ 45 000Accounts receivable50 00055 000Inventory125 000175000Property, plant and equipment930 000745 000Accumulated depreciation(270 000)(200 000) Total assets$900 000$820 000Accounts payable$ 110 000$105 000Unsecured syndicated bank loan(long-term)180 000200 000Total liabilities$290 000$305 000Ordinary shares$350 000$280 000Retained earnings260 000235 000Total shareholders' equity610 000515000Total liabilities and shareholders' equity$900 000$820 000The following additional information is available:iProfits after tax for 2022 were $50000.iiCash dividends of $25000 were paid during the year.A portion of unsecured syndicated bank loan maturedand was repaid during the year.iiiivOrdinary 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 ofdepreciation expense.VviREQUIREDPrepare a statement of cash flows for the year using thedirect method for the operating activities section andprepare a reconciliation of profits after tax to cash flow fromoperations.

The cash flow statement is prepared to record the cash flow from various activities during the…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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