Fool’s Paradise Ltd had cash and cash equivalents at 1 January 2019 of $400,000. The transactions of Fool’s Paradise Ltd for the year to 31 December 2019 are as follows: Borrowed $850,000 with a 9-month loan payable Received $6,340,000 cash for customer accounts Sold for $360,000 cash a plant asset with a carrying amount of $180,000 Issued ordinary shares for $480,000 cash Purchased a plant asset for $650,000; $237,500 in cash and $412,500 in loan Exchanged 60,000 shares for land with a fair value of $1,000,000 Received a $350,000 dividend in cash Received $25,000 interest from term deposit Invested $500,000 cash on the short-term money market Paid fixed-term loan principal of $900,000 and interest of $90,000 Cash payments for supplier’s accounts $6,300,000 Dividend paid during the period $200,000 Wages expense shown in the income statement is $75,000. At the end of the year the balance sheet shows prepaid Wages expense of $65,000. There was a prepaid Wages expense of $35,000 at the beginning of the year. Required: Prepare the statement of cash flows of Fool’s Paradise Ltd for the year to 31 December 2019.
Fool’s Paradise Ltd had cash and cash equivalents at 1 January 2019 of $400,000. The transactions of
Fool’s Paradise Ltd for the year to 31 December 2019 are as follows:
Borrowed $850,000 with a 9-month loan payable
Received $6,340,000 cash for customer accounts
Sold for $360,000 cash a plant asset with a carrying amount of $180,000
Issued ordinary shares for $480,000 cash
Purchased a plant asset for $650,000; $237,500 in cash and $412,500 in loan
Exchanged 60,000 shares for land with a fair value of $1,000,000
Received a $350,000 dividend in cash
Received $25,000 interest from term deposit
Invested $500,000 cash on the short-term
Paid fixed-term loan principal of $900,000 and interest of $90,000
Cash payments for supplier’s accounts $6,300,000
Dividend paid during the period $200,000
Wages expense shown in the income statement is $75,000. At the end of the year the balance
sheet shows prepaid Wages expense of $65,000. There was a prepaid Wages expense of $35,000
at the beginning of the year.
Required:
Prepare the statement of
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