For the company "ALD Development S.A." Its balance sheet for the years 2021 and2020 is given (all amounts are in euros):PlotsMechanical equipmentAccumulated depreciation machine. EquipmentCommodities finished stockCustomersPromissory notes receivableSuppliers' advancesCash resourcesTotal assetsShare capitalResults in re-employmentLong-term liabilities (same loan)SuppliersCheques payableInterest payableTotal own funds and liabilitiesAlso, theBalance sheetCompany's Income Statement for the year 2021 is:Profit and loss statementSalesCost of salesOther operating expensesDepreciationLoss from the sale of mechanical equipmentEarnings before interest and taxesInterest debitedProfit before taxLess: Income taxNet profit for the year2020(67.000)(16.000)(14.000)(3.000)80.00098.000100.000 140.000(25.000)(26.000)25.00033.00045.00017.00030.00020.0003.0006.50051.00035.000309.000 323.500145.00011.00051.00030.00070.0002.000309.000215.0002021115.000(7.000)108.000(6.000)102.000145.000104.00067.0003.5001.0003.000323.500Additional information:1. 9,000 dividends were paid2. 60,000 mechanical equipment was purchased, while mechanical equipmentworth 20,000 (with accumulated depreciation of 13,000) was sold at book valueinstead of 4,0003. An amount of 16,000 was received from a bond loan.1. Prepare the Cash Flow Statement according to the indirect method

Indirect method for a cash flow statement: The indirect method for a cash flow statement is a way to…

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Business

Accounting

Prepare the Cash Flow Statement according to the indirect method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

For the company "ALD Development S.A." Its balance sheet for the years 2021 and
2020 is given (all amounts are in euros):
Plots
Mechanical equipment
Accumulated depreciation machine. Equipment
Commodities finished stock
Customers
Promissory notes receivable
Suppliers' advances
Cash resources
Total assets
Share capital
Results in re-employment
Long-term liabilities (same loan)
Suppliers
Cheques payable
Interest payable
Total own funds and liabilities
Also, the
Balance sheet
Company's Income Statement for the year 2021 is:
Profit and loss statement
Sales
Cost of sales
Other operating expenses
Depreciation
Loss from the sale of mechanical equipment
Earnings before interest and taxes
Interest debited
Profit before tax
Less: Income tax
Net profit for the year
2020
(67.000)
(16.000)
(14.000)
(3.000)
80.000
98.000
100.000 140.000
(25.000)
(26.000)
25.000
33.000
45.000
17.000
30.000
20.000
3.000
6.500
51.000
35.000
309.000 323.500
145.000
11.000
51.000
30.000
70.000
2.000
309.000
215.000
2021
115.000
(7.000)
108.000
(6.000)
102.000
145.000
104.000
67.000
3.500
1.000
3.000
323.500
Additional information:
1. 9,000 dividends were paid
2. 60,000 mechanical equipment was purchased, while mechanical equipment
worth 20,000 (with accumulated depreciation of 13,000) was sold at book value
instead of 4,000
3. An amount of 16,000 was received from a bond loan.
1. Prepare the Cash Flow Statement according to the indirect method

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