Quertin 6 The comparative statements of financial position for Amaral Reis SA as of December 31 are presented as follows. Amaral Reis SA Comparative Statements of Financial Position December 31 Assets 2020 2019 Land R$145,000 228,000 (45,000) 200,000 R$130,000 Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable Cash 155,000 (35,000) 200,000 (60,000) 18,280 154,550 46,000 62,520 (40,000) 21,000 142,000 62,000 45,000 Total R$749,350 R$680,000 Equity and Liabilities Share capital-ordinary, R$1 par Retained earnings Bonds payable Accounts payable R$195,000 208,000 300,000 46,350 R$160,000 180,000 300,000 40,000 Total R$749,350 R$680,000 Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$20,000 were paid. 4. Net income for 2020 was R$48,000. 5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a b value of R$12,000 was sold for R$6,000 cash. 6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,00 Instructions Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Quertin 6 The comparative statements of financial position for Amaral Reis SA as of December 31 are presented as follows. Amaral Reis SA Comparative Statements of Financial Position December 31 Assets 2020 2019 Land R$145,000 228,000 (45,000) 200,000 R$130,000 Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable Cash 155,000 (35,000) 200,000 (60,000) 18,280 154,550 46,000 62,520 (40,000) 21,000 142,000 62,000 45,000 Total R$749,350 R$680,000 Equity and Liabilities Share capital-ordinary, R$1 par Retained earnings Bonds payable Accounts payable R$195,000 208,000 300,000 46,350 R$160,000 180,000 300,000 40,000 Total R$749,350 R$680,000 Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$20,000 were paid. 4. Net income for 2020 was R$48,000. 5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a b value of R$12,000 was sold for R$6,000 cash. 6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,00 Instructions Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q6
Transcribed Image Text:Quntin b
The comparative statements of financial position for Amaral Reis SA as of December 31
are presented as follows.
Amaral Reis SA
Comparative Statements of Financial Position
December 31
Assets
2020
2019
Land
R$145,000
R$130,000
155,000
Equipment
Accumulated depreciation-equipment
Buildings
Accumulated depreciation-buildings
Prepaid expenses
Inventory
228,000
(45,000)
200,000
(35,000)
200,000
(60,000)
18,280
154,550
46,000
62,520
(40,000)
21,000
142,000
Accounts receivable
62,000
45,000
Cash
Total
R$749,350
R$680,000
Equity and Liabilities
Share capital-ordinary, R$1 par
Retained earnings
Bonds payable
Accounts payable
R$195,000
R$160,000
208,000
300,000
46,350
180,000
300,000
40,000
Total
R$749,350
R$680,000
Additional information:
1. Operating expenses include depreciation expense of R$40,000.
2. Land was sold for cash at book value of R$20,000.
3. Cash dividends of R$20,000 were paid.
4. Net income for 2020 was R$48,000.
5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a book
value of R$12,000 was sold for R$6,000 cash.
6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
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