As part of your analysis, you are required to investigate Insignia Corporation Limited’s cash flows.Required: Using the financial statement provided:Calculate the following for 2020:Cash Flow from AssetsCash Flow to CreditorsCash Flow to Stockholders The following comprehensive assessment is based on a continuing case study of InsigniaCorporation Limited. The following financial statements have been provided:Insignia Corporation LimitedIncome StatementFor the years ended December 31, 2019 & 202020192020('000s)900,000(350,000)(75,000)(65,000)(55,000)355,000('000s)1035,000(400,000)(80,000)(75,000)(60,000)420,000SalesCost of Goods SoldSelling & Marketing CostsAdmin. ExpensesDepreciation ExpenseEarnings before Interest & TaxesInterest Expense(25,000)330,000(30,000)390,000Taxable IncomeTaxation (30%)(99,000)231,000(117,000)273,000Net IncomeDividends (40%)Addition to Retained Earnings92,400109,200138,600163,800 Insignia Corporation LimitedStatement of Financial PositionAs at December 31, 2018 & 20192019202020192020('000s)('000s)('000s)('000s)ASSETSLIABILITIES & EQUITYCurrent AssetsCurrent LiabilitiesAccounts PayablesNotes PayablesInventories175,000100,000350,000450,000243,800160,00060,000Accounts Receivables200,000Cash & Equivalents350,000395,000220,000275,000900,0001088,800Non-current Liabilites790,000835,000Non Current Assets, Net700,000805,000Total Liabilities1010,0001110,000EquityCommon Stock230,000260,000Retained EarningsTotal Equity360,000590,000523,800783,800TOTAL ASSETS1600,0001893,800TOTAL LIAB. & EQUITY1600,0001893,800

Name: As part of your analysis, you are required to investigate Insignia Cor
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Description: As part of your analysis, you are required to investigate Insignia Corporation Limited’s cash flows.Required: Using the financial statement provided:Calculate the following for 2020:Cash Flow from AssetsCash Flow to CreditorsCash Flow to Stockholders

Solution- OPERATING CASH FLOW: EBIT + DEPRECIATION - TAXES = 420000+60000-117000 =…

Business

Accounting

As part of your analysis, you are required to investigate Insignia Corporation Limited’s cash flows. Required: Using the financial statement provided: Calculate the following for 2020: Cash Flow from Assets Cash Flow to Creditors Cash Flow to Stockholders

As part of your analysis, you are required to investigate Insignia Corporation Limited’s cash flows. Required: Using the financial statement provided: Calculate the following for 2020: Cash Flow from Assets Cash Flow to Creditors Cash Flow to Stockholders

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 15DQ

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