The condensed balance sheet of the Dae-jung Inn are as follows. Assets 2019 2020 Current Assets Cash 30.000 70.000 Marketable Securities 20.000 25.000 Accounts Receivable 80.000 105.000 Inventory 20.000 25.000 Prepaid Expenses 15.000 5.000 Total Current Assets 165.000 230.000 Investments 160.000 480.000 Property and Equipment Land 440.000 440.000 Building 2.000.000 2.000.000 Equipment 600.000 710.000 Accumulated Depreciation (1.000.000) (1.425.000) Net Property and Equipment 2.040.000 1.725.000 Total Assets 2.365.000 2.415.000 Liabilities and Owners Equity Current Liabilities Account Payable 30.000 35.000 Dividends Payable 25.000 20.000 Current Portion of LTD 45.000 45.000 Total 100.000 100.000 Long-term Debt 1.000.000 1.040.000 Capital Stock 1.175.000 1.175.000 Treasury Stock (10.000) (125.000) Retained Earnings 100.000 225.000 Total Liabilities and Owners Equity 2.365.000 2.415.000 Sales 2.780.000 Cost of Sales 750.000 Gross Profit 2.030.000 Depreciation 350.000 Other Expenses (except depreciation) 1.240.000 Net Operating Income 440.000 Gains on Sales and Equipment 20.000 Loss on Sale of investments (50.000) Income Taxes 80.000 Net Income 330.000 Additional Information: 1.Equipment costing EUR 100.000 was sold for EUR 80.000 during 2020 2.Investments costing 100.000 were sold during 2020 for a loss of EUR 50.000 3.Dividents of EUR 205.000 were declared during 2020 4.Long-term debt of EUR 200.000 was borrowed during 2020 5.Marketable securities of EUR 5.000 were purchased during 2020 Treasury stock of EUR 115.000 was purchased during 2020 Required: Prepare the Dae-Jung Inn SCF for 2020 using the indirect method and decide if the following statements are correct. (true of false) -Net Cash Flows from Operating Activities are EUR 365.000 -Net Cash Flows from Operating Activities are EUR 695.000 -Net Cash Flows from Investing Activities are EUR 265.000 (negative)
The condensed
|
Assets |
2019 |
2020 |
|
Current Assets |
|
|
|
Cash |
30.000 |
70.000 |
|
Marketable Securities |
20.000 |
25.000 |
|
|
80.000 |
105.000 |
|
Inventory |
20.000 |
25.000 |
|
Prepaid Expenses |
15.000 |
5.000 |
|
Total Current Assets |
165.000 |
230.000 |
|
Investments |
160.000 |
480.000 |
|
Property and Equipment |
|
|
|
Land |
440.000 |
440.000 |
|
Building |
2.000.000 |
2.000.000 |
|
Equipment |
600.000 |
710.000 |
|
|
(1.000.000) |
(1.425.000) |
|
Net Property and Equipment |
2.040.000 |
1.725.000 |
|
Total Assets |
2.365.000 |
2.415.000 |
|
Liabilities and Owners Equity |
|
|
|
Current Liabilities |
|
|
|
Account Payable |
30.000 |
35.000 |
|
Dividends Payable |
25.000 |
20.000 |
|
Current Portion of LTD |
45.000 |
45.000 |
|
Total |
100.000 |
100.000 |
|
Long-term Debt |
1.000.000 |
1.040.000 |
|
Capital Stock |
1.175.000 |
1.175.000 |
|
|
(10.000) |
(125.000) |
|
|
100.000 |
225.000 |
|
Total Liabilities and Owners Equity |
2.365.000 |
2.415.000 |
|
Sales |
2.780.000 |
|
Cost of Sales |
750.000 |
|
Gross Profit |
2.030.000 |
|
Depreciation |
350.000 |
|
Other Expenses (except depreciation) |
1.240.000 |
|
Net Operating Income |
440.000 |
|
Gains on Sales and Equipment |
20.000 |
|
Loss on Sale of investments |
(50.000) |
|
Income Taxes |
80.000 |
|
Net Income |
330.000 |
Additional Information:
1.Equipment costing EUR 100.000 was sold for EUR 80.000 during 2020
2.Investments costing 100.000 were sold during 2020 for a loss of EUR 50.000
3.Dividents of EUR 205.000 were declared during 2020
4.Long-term debt of EUR 200.000 was borrowed during 2020
5.Marketable securities of EUR 5.000 were purchased during 2020
- Treasury stock of EUR 115.000 was purchased during 2020
Required:
Prepare the Dae-Jung Inn SCF for 2020 using the indirect method and decide if the following statements are correct. (true of false)
-Net
-Net Cash Flows from Operating Activities are EUR 695.000
-Net Cash Flows from Investing Activities are EUR 265.000 (negative)
-Net Cash Flows from Financing Activities are EUR 170.000 (negative)
-Net Cash Flows from Financing Activities are EUR 65.000 (negative)
-Net Increase in Cash during 2020: EUR 70.000
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