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Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.

Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.

FINANCIAL ACCOUNTING
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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The company reported for the current year 20X1 the following income statement: Sales Cost of goods Gross margin Income Statement Selling expenses General & administrative expenses Net income before taxes Income Taxes Net Income after Taxes 202,500 (105,000) 97,500 (20,000) (27,700) 49,800 (9,000) 40,800 Additional Information: The amounts of selling expenses and general & administrative expenses incorporate expenses related to wages of about €26,000, other expenses paid in cash of about €14,200 and depreciation expenses. Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.
Transcribed Image Text:The company reported for the current year 20X1 the following income statement: Sales Cost of goods Gross margin Income Statement Selling expenses General & administrative expenses Net income before taxes Income Taxes Net Income after Taxes 202,500 (105,000) 97,500 (20,000) (27,700) 49,800 (9,000) 40,800 Additional Information: The amounts of selling expenses and general & administrative expenses incorporate expenses related to wages of about €26,000, other expenses paid in cash of about €14,200 and depreciation expenses. Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.
A comparative balance sheet for "BETA" Company containing data in € for the most recent years is as follows: Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Accounts receivables Inventories Prepayment accounts Total current assets Total assets 20X1 160,000 (45,000) 115,000 21,500 136,500 51,000 67,500 40,000 8,000 166,500 303,000 Comparative Balance Sheet Liabilities & 20X0 Stockholders' Equity Stockholders' equity: 135,000 Common stock (37,500) Retained earnings 97,500 Total equity 15,000 Long-term liabilities: 112,500 Long-term notes payable Total long-term liabilities Current liabilities: 8,000 142,500 stockholders' 43,500 42,000 Accounts payable Wages payable 49,000 Taxes payable Short-term debt Total current liabilities Total liabilities 255,000 Total liabilities & stockholders' equity 20X1 129,900 55,800 185,700 57,000 57,000 22,000 3,300 3,000 32,000 60,300 117,300 303,000 20X0 105,900 37,500 143,400 54,000 54,000 17,000 2,100 15,000 23,500 57,600 111,600 255,000
Transcribed Image Text:A comparative balance sheet for "BETA" Company containing data in € for the most recent years is as follows: Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Accounts receivables Inventories Prepayment accounts Total current assets Total assets 20X1 160,000 (45,000) 115,000 21,500 136,500 51,000 67,500 40,000 8,000 166,500 303,000 Comparative Balance Sheet Liabilities & 20X0 Stockholders' Equity Stockholders' equity: 135,000 Common stock (37,500) Retained earnings 97,500 Total equity 15,000 Long-term liabilities: 112,500 Long-term notes payable Total long-term liabilities Current liabilities: 8,000 142,500 stockholders' 43,500 42,000 Accounts payable Wages payable 49,000 Taxes payable Short-term debt Total current liabilities Total liabilities 255,000 Total liabilities & stockholders' equity 20X1 129,900 55,800 185,700 57,000 57,000 22,000 3,300 3,000 32,000 60,300 117,300 303,000 20X0 105,900 37,500 143,400 54,000 54,000 17,000 2,100 15,000 23,500 57,600 111,600 255,000
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