, Condensed financial data of Sinjh SA follow. Sinjh SA Comparative Statements of Financial Position December 31 Assets 2020 2019 €242,500 (52,000) 114,000 Equipment Accumulated depreciation-equipment Long-term investments Prepaid expenses Inventory Accounts receivable Cash €265,000 (47,000) 140,000 29,300 112,500 92,800 100,350 26,000 102,850 33,000 48,400 Total €692,950 €514,750 Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Accrued expenses payable €220,000 234,450 110,000 112,000 16,500 €175,000 105,450 150,000 67,300 17,000 Total €692,950 €514,750 Sinjh SA Income Statement For the Year Ended December 31, 2020 Sales revenue €392,780 5,000 Gain on disposal of plant assets €397,780 Less: 135,460 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense 12,410 45,000 27,280 4,730 224,880 Net income €172,900 Additional information: 1. New equipment costing €80,000 was purchased for cash during the year. 2. Old equipment having an original cost of €57,500 and accumulated depreciation of €50,000 was sold for €12,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of €43,900 was declared and paid during the year. Instructions . Prepare a statement of cash flows using the indirect method. 0. Prepare a statement of cash flows for Sinjh using the direct method.
, Condensed financial data of Sinjh SA follow. Sinjh SA Comparative Statements of Financial Position December 31 Assets 2020 2019 €242,500 (52,000) 114,000 Equipment Accumulated depreciation-equipment Long-term investments Prepaid expenses Inventory Accounts receivable Cash €265,000 (47,000) 140,000 29,300 112,500 92,800 100,350 26,000 102,850 33,000 48,400 Total €692,950 €514,750 Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Accrued expenses payable €220,000 234,450 110,000 112,000 16,500 €175,000 105,450 150,000 67,300 17,000 Total €692,950 €514,750 Sinjh SA Income Statement For the Year Ended December 31, 2020 Sales revenue €392,780 5,000 Gain on disposal of plant assets €397,780 Less: 135,460 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense 12,410 45,000 27,280 4,730 224,880 Net income €172,900 Additional information: 1. New equipment costing €80,000 was purchased for cash during the year. 2. Old equipment having an original cost of €57,500 and accumulated depreciation of €50,000 was sold for €12,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of €43,900 was declared and paid during the year. Instructions . Prepare a statement of cash flows using the indirect method. 0. Prepare a statement of cash flows for Sinjh using the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Condensed financial data of Sinjh SA follow.
Sinjh SA
Comparative Statements of Financial Position
December 31
Assets
2020
2019
Equipment
Accumulated depreciation-equipment
Long-term investments
Prepaid expenses
Inventory
Accounts receivable
€265,000
(47,000)
140,000
29,300
112,500
92,800
100,350
€242,500
(52,000)
114,000
26,000
102,850
33,000
48,400
Cash
Total
€692,950
€514,750
Equity and Liabilities
Share capital-ordinary
Retained earnings
Bonds payable
Accounts payable
Accrued expenses payable
€220,000
234,450
110,000
112,000
16,500
€175,000
105,450
150,000
67,300
17,000
Total
€692,950
€514,750
Sinjh SA
Income Statement
For the Year Ended December 31, 2020
Sales revenue
€392,780
5,000
Gain on disposal of plant assets
Less:
€397,780
135,460
Cost of goods sold
Operating expenses, excluding
depreciation
Depreciation expense
Income tax expense
Interest expense
12,410
45,000
27,280
4,730
224,880
Net income
€172,900
Additional information:
1. New equipment costing €80,000 was purchased for cash during the year.
2. Old equipment having an original cost of €57,500 and accumulated depreciation of €50,000 was
sold for €12,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of €43,900 was declared and paid during the year.
Instructions
U. Prepare a statement of cash flows using the indirect method.
0. Prepare a statement of cash flows for Sinjh using the direct method.
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