he comparative statements of financial position for Marwa Ltd. at December 31, 2024 and 2023, are presented below: Comparative Statements of Financial Position As at December 31 2024 2023 Cash $13,000 $ 59,500 Accounts receivable 38,000 23,000 Merchandise inventory 13,000 20,500 Prepaid expenses 7,000 8,000 Property, plant, and equipment, net 1,065,000 649,000 Total assets $ 1,136,000 $760,000 Accounts payable $ 26,500 $ 22,500 Income tax payable 9,000 17,000 Notes payable, due Nov. 1, 2025 25,500 55, 500 Share capital 183,000 153,000 Retained earnings 892,000 512,000 Total liabilities and shareholders' equity $ 1, 136, 000 $ 760,000 The statement of earnings for 2024 showed the following information: Sales $ 2,600,000 Gross profit 1,600,000 Operating expenses (includes depreciation of $51,000) 750,000 Interest expense 30,000 Income tax expense 175,000 As well, property, plant, and equipment were acquired for $490,000 cash during 2024. Also during 2024, property, plant, and equipment were sold at their carrying amount in exchange for cash. Required: 1. Prepare a complete statement of cash flows for Marwa Ltd. for the year 2024. Use the indirect method for the operating section. (Negative answers should be indicated by a minus sign.)
he comparative statements of financial position for Marwa Ltd. at December 31, 2024 and 2023, are presented below: Comparative Statements of Financial Position As at December 31 2024 2023 Cash $13,000 $ 59,500 Accounts receivable 38,000 23,000 Merchandise inventory 13,000 20,500 Prepaid expenses 7,000 8,000 Property, plant, and equipment, net 1,065,000 649,000 Total assets $ 1,136,000 $760,000 Accounts payable $ 26,500 $ 22,500 Income tax payable 9,000 17,000 Notes payable, due Nov. 1, 2025 25,500 55, 500 Share capital 183,000 153,000 Retained earnings 892,000 512,000 Total liabilities and shareholders' equity $ 1, 136, 000 $ 760,000 The statement of earnings for 2024 showed the following information: Sales $ 2,600,000 Gross profit 1,600,000 Operating expenses (includes depreciation of $51,000) 750,000 Interest expense 30,000 Income tax expense 175,000 As well, property, plant, and equipment were acquired for $490,000 cash during 2024. Also during 2024, property, plant, and equipment were sold at their carrying amount in exchange for cash. Required: 1. Prepare a complete statement of cash flows for Marwa Ltd. for the year 2024. Use the indirect method for the operating section. (Negative answers should be indicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:he comparative statements of financial position for Marwa Ltd. at December 31, 2024 and 2023, are
presented below: Comparative Statements of Financial Position As at December 31 2024 2023 Cash
$13,000 $ 59,500 Accounts receivable 38,000 23,000 Merchandise inventory 13,000 20,500
Prepaid expenses 7,000 8,000 Property, plant, and equipment, net 1,065,000 649,000 Total assets $
1,136,000 $760,000 Accounts payable $ 26,500 $ 22,500 Income tax payable 9,000 17,000 Notes
payable, due Nov. 1, 2025 25,500 55, 500 Share capital 183,000 153,000 Retained earnings
892,000 512,000 Total liabilities and shareholders' equity $ 1, 136, 000 $ 760,000 The statement of
earnings for 2024 showed the following information: Sales $ 2,600,000 Gross profit 1,600,000
Operating expenses (includes depreciation of $51,000) 750,000 Interest expense 30,000 Income tax
expense 175,000 As well, property, plant, and equipment were acquired for $490,000 cash during
2024. Also during 2024, property, plant, and equipment were sold at their carrying amount in
exchange for cash. Required: 1. Prepare a complete statement of cash flows for Marwa Ltd. for the
year 2024. Use the indirect method for the operating section. (Negative answers should be
indicated by a minus sign.)
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