Q6 Quntin bThe comparative statements of financial position for Amaral Reis SA as of December 31are presented as follows.Amaral Reis SAComparative Statements of Financial PositionDecember 31Assets20202019LandR$145,000R$130,000155,000EquipmentAccumulated depreciation-equipmentBuildingsAccumulated depreciation-buildingsPrepaid expensesInventory228,000(45,000)200,000(35,000)200,000(60,000)18,280154,55046,00062,520(40,000)21,000142,000Accounts receivable62,00045,000CashTotalR$749,350R$680,000Equity and LiabilitiesShare capital-ordinary, R$1 parRetained earningsBonds payableAccounts payableR$195,000R$160,000208,000300,00046,350180,000300,00040,000TotalR$749,350R$680,000Additional information:1. Operating expenses include depreciation expense of R$40,000.2. Land was sold for cash at book value of R$20,000.3. Cash dividends of R$20,000 were paid.4. Net income for 2020 was R$48,000.5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a bookvalue of R$12,000 was sold for R$6,000 cash.6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,000.InstructionsPrepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.

Cash Flow Statement (Indirect Method) Cash Flow from Operating Activities Amount (In $) Amount…

Quertin 6 The comparative statements of financial position for Amaral Reis SA as of December 31 are presented as follows. Amaral Reis SA Comparative Statements of Financial Position December 31 Assets 2020 2019 Land R$145,000 228,000 (45,000) 200,000 R$130,000 Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Prepaid expenses Inventory Accounts receivable Cash 155,000 (35,000) 200,000 (60,000) 18,280 154,550 46,000 62,520 (40,000) 21,000 142,000 62,000 45,000 Total R$749,350 R$680,000 Equity and Liabilities Share capital-ordinary, R$1 par Retained earnings Bonds payable Accounts payable R$195,000 208,000 300,000 46,350 R$160,000 180,000 300,000 40,000 Total R$749,350 R$680,000 Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$20,000 were paid. 4. Net income for 2020 was R$48,000. 5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a b value of R$12,000 was sold for R$6,000 cash. 6. Issued 35,000 shares of R$1 par value ordinary shares in exchange for land with a fair value of R$35,00 Instructions Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.9BE