(4 150) PROBLEM 6 (25 ) PT A PT A INCOME STATEMENT STATEMENT OF FINANCIAL POSITION in US$) For the year ended 31 Des 20 in US$) ASSETS 31 Dec 20 31 Dec 19 Changes Net Sales 264 360 Cash and Bank 299 500 204 400 95 100 COGS (105 740) Investment (short term) 97 000 114 000 (17 000) Gross profit 158 620 Account receivables 66 200 48 700 17 500 ( ) Operating expenses (48 900) ( ) AFDA (3 300) (850) Operating income 109 720 Inventory 95 350 102 850 (7 500) ( ) Other income interest revenue 3 470 Prepaid expenses 42 800 34 900 7 900 ( ) Other exp Loss on sale of investment (4 000) Equipment 257 000 242 500 14 500 EBIT 109 190 Accum Depr Equipment (50 600) (52 100) (1 500) ( ) Interest exp (13 120) Total 803 100 691 950 EBT 96 070 ( ) Income tax exp (70 830) LIABILITIES AND EQUITY Net income 25 240 Accounts payable 113 800 74 600 39 200 Interest payable 16 410 17 000 (590) Additional information Tax payable 12 700 15 200 (2 500) 1 The company sold investment for cash Bank payable 132 400 124 700 7 700 2 The comp purchased new equipment for $72,000, cash Share capital ordinary shares 220 000 160 000 60 000 3 The company sold old equipment for $22,350 cash Retained earnings 312 790 305 450 7 340 4 They company issued additional Ordinary Shares for cash Treasury shares (5 000) (5 000) 5 Cash dividend declared and all paid during 2020 (calculate Total 803 100 691 950 the amount yourself) 6 Operating expenses include depreciation expense $33,650 and bad debt expense $850 Instructions a Prepare Statement of cash flows for the year ended December 31, 2020 using direct method Operating activities start with Cash receipts from customer (20 ) b Prepare Statement of cash flows using indirect method (Operating activities only, starting with Net Income) (5 )

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(4 150) PROBLEM 6 (25 ) PT A PT A INCOME STATEMENT STATEMENT OF FINANCIAL POSITION in US$) For the year ended 31 Des 20 in US$) ASSETS 31 Dec 20 31 Dec 19 Changes Net Sales 264 360 Cash and Bank 299 500 204 400 95 100 COGS (105 740) Investment (short term) 97 000 114 000 (17 000)   Gross profit 158 620 Account receivables 66 200 48 700 17 500 ( ) Operating expenses (48 900) ( ) AFDA (3 300) (850)   Operating income 109 720 Inventory 95 350 102 850 (7 500) ( ) Other income interest revenue 3 470 Prepaid expenses 42 800 34 900 7 900 ( ) Other exp  Loss on sale of investment (4 000) Equipment 257 000 242 500 14 500   EBIT 109 190 Accum  Depr Equipment (50 600) (52 100) (1 500) ( ) Interest exp (13 120) Total 803 100 691 950   EBT 96 070 ( ) Income tax exp (70 830) LIABILITIES AND EQUITY   Net income 25 240 Accounts payable 113 800 74 600 39 200 Interest payable 16 410 17 000 (590) Additional information  Tax payable 12 700 15 200 (2 500) 1 The company sold investment for cash  Bank payable 132 400 124 700 7 700 2 The comp purchased new equipment for $72,000, cash  Share capital  ordinary shares 220 000 160 000 60 000 3 The company sold old equipment for $22,350 cash  Retained earnings 312 790 305 450 7 340 4 They company issued additional Ordinary Shares for cash  Treasury shares (5 000) (5 000) 5 Cash dividend declared and all paid during 2020  (calculate Total 803 100 691 950 the amount yourself)  6 Operating expenses include depreciation expense $33,650 and bad debt expense $850  Instructions  a  Prepare Statement of cash flows for the year ended December 31, 2020 using direct method  Operating activities start with Cash receipts from customer  (20 )  b  Prepare Statement of cash flows using indirect method (Operating activities only, starting with Net Income)  (5 )

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(4.150) PROBLEM 6 (25%) PT A PT A INCOME STATEMENT STATEMENT OF FINANCIAL POSITION in US$) For the year ended 31 Des-20 in US$) ASSETS

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