During 2019, Minh Corporation had a net income of $144,000. Ordinary share capital was $200,000 (200,000 shares at $1 par value) Included on its income statement were depreciation expense of $16,000, amortization expense of $1,800 and impairment loss of $200. During the year, Accounts Receivable decreased by $8,200, Inventories increased by $5,400, Prepaid Expenses decreased by $1,000, Accounts Payable decreased by $14,000, and Accrued Liabilities decreased by $1,700. PPE was sold for $600 (cost was $1,000, accumulated depreciation was $700). Share capital was issued during the year (01 March 1/10 bonus issue was made, 01 November – 30, 000 shares were sold for $1,3 each). Dividends were paid for $700 and declared for $1500. Use the indirect method to determine net cash flows from operating, investing and financing activities.

During 2019, Minh Corporation had a net income of $144,000. Ordinary share capital was $200,000 (200,000 shares at $1 par value) Included on its income statement were depreciation expense of $16,000, amortization expense of $1,800 and impairment loss of $200. During the year, Accounts Receivable decreased by $8,200, Inventories increased by $5,400, Prepaid Expenses decreased by $1,000, Accounts Payable decreased by $14,000, and Accrued Liabilities decreased by $1,700. PPE was sold for $600 (cost was $1,000, accumulated depreciation was $700). Share capital was issued during the year (01 March 1/10 bonus issue was made, 01 November – 30, 000 shares were sold for $1,3 each). Dividends were paid for $700 and declared for $1500. Use the indirect method to determine net cash flows from operating, investing and financing activities.

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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