Kim Company had the following financial information. 2021 2020 Non-current Assets Property, plant & equipment Accumulated depreciation Long-term investments 206,500 (34,000) 135,000 (23,000) 33,000 Current Assets Inventory Accounts receivable (net) 39,000 20,300 35,000 30,900 39,600 278.000 10,200 214,500 Cash Equity Share capital-ordinary Retained earnings 125,000 85,000 36,000 60,000 Non-current Liabilities Long-term notes payable 55,000 50,000 Current Liabilities Accounts payable 21,000 17,000 Accrued liabilities 17,000 278.000 26,500 214,500 Additional data: Net income 49,000 Depreciation on plant assets for the year Sold the long-term investments for 11,000 28,000 Paid dividends of 25,000 Use cash to purchase machinery costing Purchased machinery by a long-term note payable of Issued ordinary shares to pay for a long-term note paya 26,500 45,000 of 40,000 Requirede Prepare a statement of cash flows (using the indirect method) for Kim Company in 2021.
Kim Company had the following financial information. 2021 2020 Non-current Assets Property, plant & equipment Accumulated depreciation Long-term investments 206,500 (34,000) 135,000 (23,000) 33,000 Current Assets Inventory Accounts receivable (net) 39,000 20,300 35,000 30,900 39,600 278.000 10,200 214,500 Cash Equity Share capital-ordinary Retained earnings 125,000 85,000 36,000 60,000 Non-current Liabilities Long-term notes payable 55,000 50,000 Current Liabilities Accounts payable 21,000 17,000 Accrued liabilities 17,000 278.000 26,500 214,500 Additional data: Net income 49,000 Depreciation on plant assets for the year Sold the long-term investments for 11,000 28,000 Paid dividends of 25,000 Use cash to purchase machinery costing Purchased machinery by a long-term note payable of Issued ordinary shares to pay for a long-term note paya 26,500 45,000 of 40,000 Requirede Prepare a statement of cash flows (using the indirect method) for Kim Company in 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Question 4-statement of cash flowe
Kim Company had the following financial information.
2021
2020
Non-current Assets
Property, plant & equipment
Accumulated depreciation
206,500
135,000
(34,000)
(23,000)
Long-term investments
33,000
Current Assets
Inventory
Accounts receivable (net)
35,000
39,000
30,900
20,300
39,600
278,000
Cash
10,200
214,500
Equity
Share capital-ordinary
Retained earnings
125,000
85,000
60,000
36,000
Non-current Liabilities
Long-term notes payable
55,000
50,000
Current Liabilities
Accounts payable
21,000
17,000
Accrued liabilities
17,000
26,500
278.000
214,500
Additional data:
Net income
49,000
Depreciation on plant assets for the year
Sold the long-term investments for
11,000
28,000
Paid dividends of
25,000
Use cash to purchase machinery costing
26,500
Purchased machinery by a long-term note payable of
Issued ordinary shares to pay for a long-term note payable of
45,000
40,000
Requirede
Prepare a statement of cash flows (using the indirect method) for Kim Company in 2021.e
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