Question
1 st month Current assets: Cash $100.000,00 A/R $35.000,00 Inventory $65.000,00 Prepaid rent $10.000,00 (4 month in advance) Non-current assets: Building $40.000,00 Accumulated depr -$500,00
1st month
Current assets: |
|
|
|
Cash | $100.000,00 |
|
|
A/R | $35.000,00 |
|
|
Inventory | $65.000,00 |
|
|
Prepaid rent | $10.000,00 | (4 month in advance) | |
Non-current assets: |
|
|
|
Building | $40.000,00 |
|
|
Accumulated depr | -$500,00 |
|
|
Equipment | $50.000,00 |
|
|
Accumulated depr | -$700,00 |
|
|
Total assets: | $298.800,00 |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Trade payables | $60.000,00 |
|
|
Short-term loan | $120.000,00 |
|
|
Unearned revenue | $40.000,00 | (4 month contract) | |
Non-current liabilities: | $0,00 |
|
|
Total liabilities: | $220.000,00 |
|
|
|
|
|
|
Equity: |
|
|
|
Capital | $60.000,00 |
|
|
Profit | $18.800,00 |
|
|
Total equity: | $78.800,00 |
|
|
|
|
|
|
Total liabilities&equity | $298.800,00 |
|
|
2nd month
The company received half of the receivables |
|
The company returned 60% of the payables |
|
Bought a car by the price 10,000$ on credit |
|
Depreciation for the car is 200$ monthly |
|
Sold 80% of inventory for 110,000$, customers paid 80% in cash |
|
Accrued salary expenses: 15,000$ |
|
Accrued utility expenses:1,200$ |
|
Recognized the rent expense for the current month |
|
Recognized the appropriate part of unearned revenue on the base of contract |
|
Accrued Profit tax is 20% |
|
The appropriate part of credit is paid out on monthly base |
|
Interest expense accrued: 1,000$ |
|
Depreciation for the bulding and equipment incurred on monthly base |
|
Prepare Cash flow statement using Indirect method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started