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222 223 Question 4-Statement of Cash Flows (20 marks) 224 A) (14 marks). The comparative unclassified statement of financial position for Black Ltd. follows: BLACK
222 223 Question 4-Statement of Cash Flows (20 marks) 224 A) (14 marks). The comparative unclassified statement of financial position for Black Ltd. follows: BLACK LTD. 225 Statement of Financial Position 226 227 December 31 228 2019 2,018.00 229 230 Assets Cash $27,000 $ 15,000 231 Held for trading investments 10,000 8,000 232 Accounts receivable 19,000 15,500 233 Inventory 18,500 10,000 234 Prepaid expenses 3,000 5,000 235 Equipment 45,000 22,000 236 Accumulated depreciation - equipment (15,500) (11,000) 237 Total assets $107,000 $ 64,500 238 239 Liabilities and Shareholders' Equity 240 Accounts payable $ 23,500 $7,500 241 Bank loan payable 15,000 26,000 242 Common shares 50,000 20,000 243 244 Retained earnings Total liabilities and shareholders' equity 18,500 11,000 $107,000 $ 64,500 245 $107,000 $64,500 5 5 Additional information regarding 2019: 71. Net income was $25,000 in 2019. B 2. An unrealized gain on held for trading investments of $2,000 was recorded. 3. Depreciation expense was $4,500 4. A new manufacturing equipment was purchased, no equipment was sold. 15. The company paid off some of its bank loan. The company did not take any new loans 26. In 2019, dividends were declared and paid. 3 4 Instruction 55 Prepare a statement of cash flows for 2019 using the template below: 56 57 58 59 60 61 262 263 264 265 266 Operating activities BLACK LTD. Statement of Cash Flows Year Ended December 31, 2019 Adjustments to reconcile net income to net cash provided (used) by operating activities: 267 268
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