MEERA LTD. Comparative Statements of Financial Position December 31 .................................................................................2017 .............................................................2016 Land Buildings Accumulated depreciation—buildings Accounts receivable £ 20,000 70,000 (15,000) 20,800 £ 26,000 70,000 (10,000) 23,400 Cash Total Share capital—ordinary Retained earnings 17,660 £113,460 £ 75,000 26,090 10,700 £120,100 £ 72,000 20,000 Accounts payable Total 12,370 £113,460 28,100 £120,100 Additional information: 1. Net income was £22,590. Dividends declared and paid were £16,500. 2. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for £5,000. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method
MEERA LTD.
Comparative
December 31
.................................................................................2017 .............................................................2016
|
Land Buildings |
£ 20,000 70,000 (15,000) 20,800 |
£ 26,000 70,000 (10,000) 23,400 |
|
Cash Total Share capital—ordinary |
17,660 £113,460 £ 75,000 26,090 |
10,700 £120,100 £ 72,000 20,000 |
|
Accounts payable Total |
12,370 £113,460 |
28,100 £120,100 |
Additional information:
1. Net income was £22,590. Dividends declared and paid were £16,500.
2. All other changes in non-current account balances had a direct effect on
flows, except the change in accumulated depreciation. The land was sold for
£5,000.
Instructions
(a) Prepare a statement of cash flows for 2017 using the indirect method
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
