Prepare a statement of cashflow( Direct method)The balance sheet provided by the title is only part of the balance sheet, so the final calculated Asset may not be equal to Equity and Liabilities, but it does not affect the preparation of the cash flow statement. Comparative Statements of Financial PositionDecember 31Assets20202019Equipment£ 60,000£ 78,000Accumulated depreciation(29,000)(24,000)equipmentInvestment Accounted for Using the5,500EquityInventory30,00020,000Accounts receivable(Net)33,00014,000CashX20,000Total£Y£108,000Equity and LiabilitiesCapital stock£ 18,000£ 14,000Retained earnings49,50038,000Bonds payable117,00033,000Less: Discount on Bonds6,000PayableAccounts payable29,00015,000Income taxes payable7,0008,000Total£214,500£108,000Income StatementFor the Year Ended December 31, 2020Sales revenue£242.000Cost of goods sold175,000Gross profit67,000Operating expenses24,000Income from operations43,000Share of Income from Associates500Interest expense4,000Income before income taxes39,500Income tax expense8,000Net income£ 31,500Additional data:A. Depreciation expense is £13,300.B. Dividends declared and paid were £20,000.C. During the year, equipment was sold for £9,700 cash. This equipment cost £18,000 originally and hadaccumulated depreciation of £8,300 at the time of sale.D. All depreciation expense is in the operating expenses.E. All bad debt expense (Total: 1,000) is in the operating expenses.F. All operating expenses except for depreciation and bad debt expense were paid in cashG. Recife Company issued $90,000 of 7%, three-year bonds at 90 on January 1, 2020. Interest is payable onDecember 31. The company uses the straight-line method to amortize bond premiums and discounts.H. At the beginning of 2020, the amount of Allowance for Bad Debts is 0

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Description: Prepare a statement of cashflow( Direct method)The balance sheet provided by the title is only part of the balance sheet, so the final calculated Asset may not be equal to Equity and Liabilities, but it does not affect the preparation of the cash flo

Cash flow statement is a statement which shows that cash inflows and cash outflow of a organisation…

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Prepare a statement of cashflow( Direct method) The balance sheet provided by the title is only part of the balance sheet, so the final calculated Asset may not be equal to Equity and Liabilities, but it does not affect the preparation of the cash flow statement.

Prepare a statement of cashflow( Direct method) The balance sheet provided by the title is only part of the balance sheet, so the final calculated Asset may not be equal to Equity and Liabilities, but it does not affect the preparation of the cash flow statement.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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