Sunflower Hotel Profit and Loss Statement For the year ended 31 December 2021 31/12/2021 HKS HKS Sales Revenue 200,000 Operating Expenses (33,100) Depreciation Expenses (97,900) Loss on sales of equipment (500) (131,500) Operating Profit 68,500 Income Tax expenses (11,300) Net Profit 57,200 Additional information: 1) In 2021, the hotel declared and paid a $6,000 cash dividend 2) The hotel issued additional 20,000 shares of common stock at par (5$ each) 3) The hotel purchased $55,000 equipment and sold equipment with a book value of $1,000 (cost $7,000, less accumulated depreciation $6,000) for $500 cash 4) Building, furnishing and operating equipment costing $56,000, $5,380 and $1,700 respectively were purchased for cash 5) $26,000 of mortgage payable was transferred to current mortgage payable Required: Complete the statement of cash flows for Year 2021 on next page using the indirect method by filing in the spaces. (Cash flows from operating activities- Cash flows from investing activities-:, Cash flows from din y. [NOTE: financing activities & net increase(decrease) in cash- Write down your answers on the Answer Sheet by clearly indicating their effects on cash flows with decreases expressed in (parenthesis).]
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Complete the statement of
![Sunflower Hotel
Profit and Loss Statement
For the year ended 31 December 2021
31/12/2021
HKS
HKS
Sales Revenue
200,000
Operating Expenses
(33,100)
Depreciation Expenses
(97,900)
Loss on sales of equipment
(500)
(131,500)
Operating Profit
68,500
Income Tax expenses
(11,300)
Net Profit
57,200
Additional information:
1) In 2021, the hotel declared and paid a $6,000 cash dividend
2) The hotel issued additional 20,000 shares of common stock at par (5$ each)
3) The hotel purchased $55,000 equipment and sold equipment with a book
value of $1,000 (cost $7,000, less accumulated depreciation $6,000) for
$500 cash
4) Building, furnishing and operating equipment costing $56,000, $5,380 and
S1,700 respectively were purchased for cash
5) $26,000 of mortgage payable was transferred to current mortgage payable
Required:
Complete the statement of cash flows for Year 2021 on next page using the
indirect method by filing in the spaces. (Cash flows from operating activities –
Cash flows from investing activities-:, Cash flows from
to y. [NOTE:
financing activities & net increase(decrease) in cash -
Write down your answers on the Answer Sheet by clearly indicating their
effects on cash flows with decreases expressed in (parenthesis).]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feacce431-0bd8-438b-bc9b-5432d036b9a3%2F83ada964-6bda-4120-ba53-00ee2af24eec%2F78zmkf_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
