Chapter 5, Problem 22E

Adom Ltd, is a private company in Ghana operating in the manufacturing sector. Below is a Statement of financial position and a summarized statement of income with comparatives for the year ended 31st December 2019. statement of financial position as at 31st December 2019: Non-current assets 2019 GH¢ 2018 GH¢ PPE 200,000 250,000 R &D 40,000 - Total Non-current assets 240,000 250,000 Current assets     Available for sale 12,000 20,000 Inventory 70,000 45,000 Trade receivables 30,000 23,000 Cash & cash equivalents 18,000 17,000 Total current assets 130,000 105,000 Total assets 370,000 355,000 Equity     Equity share capital (GH¢1 per share) 150,000 100,000 10% preference share capital 50,000 50,000 Retained earnings 60,000 55,000 Total equity 260,000 205,000 Non-current liabilities     10% loan notes 50,000 90,000 12% debentures…

The balance sheet for Tomkins plc, a British company, is presented as follows.   Tomkins plcConsolidated Balance Sheet(amounts in £ millions)          Non-current assets             Goodwill 436.0        Other intangible assets 78.0        Property, plant and equipment 1,122.8        Investments in associates 20.6        Trade and other receivables 81.1        Deferred tax assets 82.9        Post-employment benefit surpluses     1.3           1,822.7        Current assets          Inventories 590.8        Trade and other receivables 753.0        Income tax recoverable 49.0        Available-for-sale investments 1.2        Cash and cash equivalents 445.0           1,839.0        Assets held for sale    11.9        Total assets 3,673.6        Current liabilities          Bank overdrafts 4.8        Bank and other loans 11.2        Obligations under finance leases 1.0        Trade and other payables 677.6        Income tax liabilities 15.2…

Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANYIncome StatementFor the Year Ended December 31, 2020 Service revenue       $971,400 Operating expenses, excluding depreciation   $623,600     Depreciation expense   55,900     Loss on disposal of plant assets   24,600   704,100 Income before income taxes       267,300 Income tax expense       39,600 Net income       $227,700 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below.     2020   2019 Accounts receivable   $74,500   $59,000 Accounts payable   41,600   28,800 Income taxes payable   10,600   6,800 Accounts payable pertain to operating expenses.Prepare the operating activities section of the statement of cash flows using the direct method.