Meera Ltd.'s comparative statements of financial position are presented below. Meera Ltd. Comparative Statements of Financial Position December 31 2020 2019 Land $ 20,000 $ 26,000 Buildings 70,000 70,000 Accumulated depreciation—buildings (15,000) (10,000) Accounts receivable 20,800 23,400 Cash 17,660 10,700 Total $113,460 $120,100 Share capital—ordinary $ 75,000 $ 72,000 Retained earnings 26,090 20,000 Accounts payable 12,370 28,100 Total $113,460 $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. 3. The land was sold for $5,000. Instructions: Prepare a statement of cash flows for 2020 using the indirect method.
Meera Ltd.'s comparative statements of financial position are presented below. Meera Ltd. Comparative Statements of Financial Position December 31 2020 2019 Land $ 20,000 $ 26,000 Buildings 70,000 70,000 Accumulated depreciation—buildings (15,000) (10,000) Accounts receivable 20,800 23,400 Cash 17,660 10,700 Total $113,460 $120,100 Share capital—ordinary $ 75,000 $ 72,000 Retained earnings 26,090 20,000 Accounts payable 12,370 28,100 Total $113,460 $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. 3. The land was sold for $5,000. Instructions: Prepare a statement of cash flows for 2020 using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Meera Ltd.'s comparative
| Meera Ltd. Comparative Statements of Financial Position December 31 |
||
| 2020 | 2019 | |
| Land |
$ 20,000
|
$ 26,000
|
| Buildings |
70,000
|
70,000
|
|
(15,000)
|
(10,000)
|
|
|
20,800
|
23,400
|
|
| Cash |
17,660
|
10,700
|
| Total |
$113,460
|
$120,100
|
| Share capital—ordinary |
$ 75,000
|
$ 72,000
|
|
26,090
|
20,000
|
|
| Accounts payable |
12,370
|
28,100
|
| Total |
$113,460
|
$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
3. The land was sold for $5,000.
Instructions:
Prepare a statement of cash flows for 2020 using the indirect method.
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