The comparative statement of financial position and statement of comprehensive income of Keriboom on December 31, 2021 are shown below: Keriboom Statement of Financial Position As of December 31, 2021 ASSETS 2021 2020 Cash and cash equivalents 440,000 200,000 Trade and other receivables 130,000 120,000 Inventory 120,000 480,000 Prepaid assets 40,000 160,000 Total current assets 730,000 960,000 Property, plant & equipment 760,000 440,000 Total noncurrent assets 760,000 440,000 TOTAL ASSETS 1,490,000 1,400,000 LIABILITIES Trade and other payables 620,000 560,000 EQUITY Owner’s capital 870,000 840,000 TOTAL LIABILITIES & EQUITY 1,490,000 1,400,000 Entity A Statement of Comprehensive Income For the year ended December 31, 2021 Sales 1,000,000 Cost of sales (600,000) GROSS PROFIT 400,000 Rent income 150,000 Depreciation expense (240,000) Insurance expense (120,000) Bad debts expense (30,000) Loss on sale of equipment (40,000) PROFIT FOR THE YEAR 120,000 Other comprehensive income - COMPREHENSIVE INCOME FOR THE YR. 120,000 Additional information: Equipment with carrying amount of ₱240,000 was sold for ₱200,000 resulting to a loss on sale of ₱40,000. Acquisition of equipment for cash amounted to ₱800,000. Owner drawings totalled ₱90,000. Requirement: Prepare an indirect statement of cash flows.
The comparative
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Keriboom Statement of Financial Position As of December 31, 2021 |
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ASSETS |
2021 |
2020 |
|
Cash and cash equivalents |
440,000 |
200,000 |
|
Trade and other receivables |
130,000 |
120,000 |
|
Inventory |
120,000 |
480,000 |
|
Prepaid assets |
40,000 |
160,000 |
|
Total current assets |
730,000 |
960,000 |
|
Property, plant & equipment |
760,000 |
440,000 |
|
Total noncurrent assets |
760,000 |
440,000 |
|
TOTAL ASSETS |
1,490,000 |
1,400,000 |
|
LIABILITIES |
|
|
|
Trade and other payables |
620,000 |
560,000 |
|
EQUITY |
|
|
|
Owner’s capital |
870,000 |
840,000 |
|
TOTAL LIABILITIES & EQUITY |
1,490,000 |
1,400,000 |
|
|
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Entity A Statement of Comprehensive Income For the year ended December 31, 2021
Sales 1,000,000 Cost of sales (600,000) |
|
|
GROSS PROFIT |
400,000 |
|
Rent income |
150,000 |
|
|
(240,000) |
|
Insurance expense |
(120,000) |
|
|
(30,000) |
|
Loss on sale of equipment |
(40,000) |
|
PROFIT FOR THE YEAR |
120,000 |
|
Other comprehensive income |
- |
|
COMPREHENSIVE INCOME FOR THE YR. |
120,000 |
Additional information:
- Equipment with carrying amount of ₱240,000 was sold for ₱200,000 resulting to a loss on sale of ₱40,000.
- Acquisition of equipment for cash amounted to ₱800,000.
- Owner drawings totalled ₱90,000.
Requirement:
Prepare an indirect statement of cash flows.
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