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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

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