Homework Help is Here – Start Your Trial Now!
Business
Accounting
prepare a cashflow statement using indirect method

prepare a cashflow statement using indirect method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

prepare a cashflow statement using indirect method

Sales 4,367,800 2,532,000 1,835,800 Cost of sales Gross Profit Operating expenses: Depreciation Other expenses 47,600 1,257,900 1,350,500 Operating income Loss on sale of investment 530,300 25,000 505,300 175,000 330,300 241,000 89,300 1,136,400 1,225,700 Income before tax Income tax Net income Dividends proposed Retained Earnings Retained Earnings b/f Retained Earnings c/f Sakkara Limited Balance sheet for the year ended 31 December 2020 2019 Assets Cash 30,000 489,100 808,900 456,700 365,700 623,100 175,000 Accounts receivable net Inventories Investments Land Equipment Depreciation 380,000 590,000 (282,100) 450,000 (234,500)
Transcribed Image Text:Sales 4,367,800 2,532,000 1,835,800 Cost of sales Gross Profit Operating expenses: Depreciation Other expenses 47,600 1,257,900 1,350,500 Operating income Loss on sale of investment 530,300 25,000 505,300 175,000 330,300 241,000 89,300 1,136,400 1,225,700 Income before tax Income tax Net income Dividends proposed Retained Earnings Retained Earnings b/f Retained Earnings c/f Sakkara Limited Balance sheet for the year ended 31 December 2020 2019 Assets Cash 30,000 489,100 808,900 456,700 365,700 623,100 175,000 Accounts receivable net Inventories Investments Land Equipment Depreciation 380,000 590,000 (282,100) 450,000 (234,500)
2,015,900 1'836,000 Liabilities and stockholders' equity Accounts payable Accrued expenses Dividend payable Ordinary Shares of 1= par 20,000 471,200 40,000 61,000 23,000 456,300 45,300 58,000 Share Premium 120,000 195,000 1,225,700 Retained Earnings 1,136,400 2,015,900 1,836,000 The shareholders of Sakkara Limited are concerned that despite the company exceeding the targeted sales in the current year, Cash held appears to have reduced drastically. They have asked you to prepare Sakkara's cash flow to help them understand the financial statements better. The following additional information is also available I. Equipment and land was acquired for cash II. There were no disposal of equipment during the year III. The investments were sold for cash IV. The Ordinary Shares were issued for cash
Transcribed Image Text:2,015,900 1'836,000 Liabilities and stockholders' equity Accounts payable Accrued expenses Dividend payable Ordinary Shares of 1= par 20,000 471,200 40,000 61,000 23,000 456,300 45,300 58,000 Share Premium 120,000 195,000 1,225,700 Retained Earnings 1,136,400 2,015,900 1,836,000 The shareholders of Sakkara Limited are concerned that despite the company exceeding the targeted sales in the current year, Cash held appears to have reduced drastically. They have asked you to prepare Sakkara's cash flow to help them understand the financial statements better. The following additional information is also available I. Equipment and land was acquired for cash II. There were no disposal of equipment during the year III. The investments were sold for cash IV. The Ordinary Shares were issued for cash
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS