Comparative statement of financial position accounts of Kopi Co. presented below:Required:Prepare statement of cash flows using direct method and explain the result! Kopi Co.Comparative Statement of Financial Position AccountsAs of December 31, 2019 and 2018Dec 31, 2019Dec 31, 2018DebitCash168,000135,000Accounts Receivable282,000240,000Inventory120,00096,000 Equity Investment (non-trading)89,000154,000Machinery120,00075,000Buildings270,000225,000Land30,00030,0001,079,000955,000CreditAllowance for Doubtful Accounts9,0006,000Accm. Depreciation – Machinery22,5009,000Accm. Depreciation – Buildings54,00036,000Accounts Payable140,00099,000Accrued Payable13,50010,500Long-Term Notes Payable84,000124,000Share Capital – Ordinary, no par600,000500,000Retained Earnings156,0001,079,000170,500955,000Additional data (ignoring taxes):1. Sales revenue for the year was $2,160,000, COGS was $1,520,000, operating expense was$481,800 (includes depreciation and bad debt expense), net income was $170,000.2. Bad debt expense for the year was $21,600.3. The cash dividend declared in 2019 was fully paid in 2019.4. A 20% share dividend was declared during the year.5. Equity investments that cost $100,000 were sold during the year for $115,000.6. Machinery that cost $15,000, on which $3,000 of depreciation had accumulated, was sold for$8,800.

Cash Flow Statement: Cash flow statement show the cash comes in or goes out during the specified…

Answered: Comparative Statement of Financial…

Business

Accounting

Comparative Statement of Financial Position Accounts As of December 31, 2019 and 2018 Dec 31, 2019

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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