The following are balance sheet data of Anwar Ali Company Ltd. Debit Balances Cash Account receivable Merchandise Inventory Prepaid Expenses Land Building Equipment Retained earnings Credit Balances Allowances for Bad debts Allowances for Depreciation-Building Allowances for Depreciation-equipment Account payable Accrued Expenses Long term Loan Capital Stock Rs. 10 Par Retained Earnings Additional Data: 2017 2016 12,000 4,000 40,000 50,000 95,000 130,000 7,000 3,000 65,000 75,000 200,000 125,000 18,000 10,000 10,000 447,000 397,000 2017 2016 4,000 5,000 30,000 27,000 3,000 5,000 50,000 63,000 10,000 7,000 100,000 80,000 250,000 200,000 10,000 447,000 397,000 During the year land costing Rs.10,000 was sold at a gain of Rs.5,000 for cash and the old equipment costing Rs.10,000 was sold for Rs.2,000 on credit. Required: Prepare Cashflow statement using indirect method for the year ended December 31,2017.
The following are balance sheet data of Anwar Ali Company Ltd. Debit Balances Cash Account receivable Merchandise Inventory Prepaid Expenses Land Building Equipment Retained earnings Credit Balances Allowances for Bad debts Allowances for Depreciation-Building Allowances for Depreciation-equipment Account payable Accrued Expenses Long term Loan Capital Stock Rs. 10 Par Retained Earnings Additional Data: 2017 2016 12,000 4,000 40,000 50,000 95,000 130,000 7,000 3,000 65,000 75,000 200,000 125,000 18,000 10,000 10,000 447,000 397,000 2017 2016 4,000 5,000 30,000 27,000 3,000 5,000 50,000 63,000 10,000 7,000 100,000 80,000 250,000 200,000 10,000 447,000 397,000 During the year land costing Rs.10,000 was sold at a gain of Rs.5,000 for cash and the old equipment costing Rs.10,000 was sold for Rs.2,000 on credit. Required: Prepare Cashflow statement using indirect method for the year ended December 31,2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
explain net income
Transcribed Image Text:The following are balance sheet data of Anwar Ali Company Ltd.
Debit Balances
Cash
Account receivable
Merchandise Inventory
Prepaid Expenses
Land
Building
Equipment
Retained earnings
Credit Balances
Allowances for Bad debts
Allowances for Depreciation-Building
Allowances for Depreciation-equipment
Account payable
Accrued Expenses
Long term Loan
Capital Stock Rs. 10 Par
Retained Earnings
Additional Data:
2017
2016
12,000
4,000
40,000
50,000
95,000
130,000
7,000
3,000
65,000
75,000
200,000
125,000
18,000
10,000
10,000
447,000
397,000
2017
2016
4,000
5,000
30,000
27,000
3,000
5,000
50,000
63,000
10,000
7,000
100,000
80,000
250,000
200,000
10,000
447,000
397,000
During the year land costing Rs.10,000 was sold at a gain of Rs.5,000 for cash and the old
equipment costing Rs.10,000 was sold for Rs.2,000 on credit.
Required: Prepare Cashflow statement using indirect method for the year ended December
31,2017.
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