- ACT 301 - Intermediate Accounting Assignment on Cash Flow Statement Submission Deadline: 31" August, 2021;5:00 P.M. (20 Marks) The following is the Balance Sheet of MoneyMakers Inc. as at 31st December, 2017 and 2018, and the Income statement for the year ending 31December, 2018 MoneyMakers Inc. Balance Sheet as at 31st December, 2017 and 2018 2018 2017 Details $ $ $ $ $ $ $ $ Non Current Assets: Property, Plant & Equipment 3307000 2967000 (-) Accumulated depreciation -1165000 -1040000 Investment in Luser's Co. 310000 275000 Loan to Bankrupted Ltd. 240000 2692000 2202000 Current Assets: : Cash 611000 500000 Bank 361000 300000 Accounts Receivables 1128000 1168000 Inventories 1850000 1715000 Prepaid Rent Expense 1000 3000 Commission Income in arrears 20000 16000 3971000 3702000 (-) Current Liabilities: Accounts Payable 1015000 955000 Income Taxes Payable 30000 50000 Dividends Payable 80000 100000 Interest on Debentures Owing 1750 0 0 Unpaid Salaries 20000 15000 1146750 1120000 Working Capital 2824250 2582000 5516250 4784000 Shareholders Equity: Common Stock, $1 par $ 500000 500000 10% Prefered Stock, $2 par 120000 100000 Additional Paid-in Capital (premium) 1530000 1500000 Retained Earnings 2912250 2684000 Asset Revaluation Reserve 4000 5066250 4784000 Longterm Liabilities: Capital lease obligation 400000 7% Debentures 50000 450000 0 5516250 4784000 MoneyMakers Inc. Income Statement for the year ending 31" December, 2018. Details 2018 $ Earnings before interest and tax (-) Interest on Debentures Earnings before tax (-) Corporation Tax Net Income (-) Preference Share Dividend (-) Common Stock Dividend Interim Final 366000 -1750 364250 -30000 334250 - 12000 -10000 -80000 232250 2680000 2912250 (+) Retained Earnings b/d Retained Earnings c/d Additional information: On December 31, 2017, MoneyMakers acquired 25% of Luser's Co.'s common stock for $275,000. On August 2018 Luser's announced a right issue of common stock amounting to $140,000. MoneyMakers bought 25% of those shares. During 2017, MoneyMakers loaned $300,000 to Bankrupted Ltd, an unrelated company. Bankrupted made the first annual principal repayment of $60,000, plus interest at 10%, on December 31, 2018. On January 2, 2018, MoneyMakers sold equipment costing $60,000, with a carrying amount of $38,000, for $37,000 cash. On December 31, 2018, MoneyMakers entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. MoneyMakers made the first rental payment of $60,000 when due on December 2, 2018. Only July 1, 2018, the company issued 50000, 7% Debentures at $1 par. For 2018, the board of directors declared a final dividend of $80,000 on common stock which is to be paid on July 1, 2019. On July 1, 2018 the directors paid the interim dividend of 2018 and the final dividend of 2017. On January 1, 2018, the company issued 10000 preferred stock for $5 each (which includes a premium of $3 per share) The directors proposed and paid the preferred stock dividend of 2018 on 31st December, 2018. Instruction: Prepare the Cash Flow Statement of MoneyMaker Inc. for the year ending 31" December, 2018. - ACT 301 - Intermediate Accounting Assignment on Cash Flow Statement Submission Deadline: 31" August, 2021;5:00 P.M. (20 Marks) The following is the Balance Sheet of MoneyMakers Inc. as at 31st December, 2017 and 2018, and the Income statement for the year ending 31December, 2018 MoneyMakers Inc. Balance Sheet as at 31st December, 2017 and 2018 2018 2017 Details $ $ $ $ $ $ $ $ Non Current Assets: Property, Plant & Equipment 3307000 2967000 (-) Accumulated depreciation -1165000 -1040000 Investment in Luser's Co. 310000 275000 Loan to Bankrupted Ltd. 240000 2692000 2202000 Current Assets: : Cash 611000 500000 Bank 361000 300000 Accounts Receivables 1128000 1168000 Inventories 1850000 1715000 Prepaid Rent Expense 1000 3000 Commission Income in arrears 20000 16000 3971000 3702000 (-) Current Liabilities: Accounts Payable 1015000 955000 Income Taxes Payable 30000 50000 Dividends Payable 80000 100000 Interest on Debentures Owing 1750 0 0 Unpaid Salaries 20000 15000 1146750 1120000 Working Capital 2824250 2582000 5516250 4784000 Shareholders Equity: Common Stock, $1 par $ 500000 500000 10% Prefered Stock, $2 par 120000 100000 Additional Paid-in Capital (premium) 1530000 1500000 Retained Earnings 2912250 2684000 Asset Revaluation Reserve 4000 5066250 4784000 Longterm Liabilities: Capital lease obligation 400000 7% Debentures 50000 450000 0 5516250 4784000 MoneyMakers Inc. Income Statement for the year ending 31" December, 2018. Details 2018 $ Earnings before interest and tax (-) Interest on Debentures Earnings before tax (-) Corporation Tax Net Income (-) Preference Share Dividend (-) Common Stock Dividend Interim Final 366000 -1750 364250 -30000 334250 - 12000 -10000 -80000 232250 2680000 2912250 (+) Retained Earnings b/d Retained Earnings c/d Additional information: On December 31, 2017, MoneyMakers acquired 25% of Luser's Co.'s common stock for $275,000. On August 2018 Luser's announced a right issue of common stock amounting to $140,000. MoneyMakers bought 25% of those shares. During 2017, MoneyMakers loaned $300,000 to Bankrupted Ltd, an unrelated company. Bankrupted made the first annual principal repayment of $60,000, plus interest at 10%, on December 31, 2018. On January 2, 2018, MoneyMakers sold equipment costing $60,000, with a carrying amount of $38,000, for $37,000 cash. On December 31, 2018, MoneyMakers entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. MoneyMakers made the first rental payment of $60,000 when due on December 2, 2018. Only July 1, 2018, the company issued 50000, 7% Debentures at $1 par. For 2018, the board of directors declared a final dividend of $80,000 on common stock which is to be paid on July 1, 2019. On July 1, 2018 the directors paid the interim dividend of 2018 and the final dividend of 2017. On January 1, 2018, the company issued 10000 preferred stock for $5 each (which includes a premium of $3 per share) The directors proposed and paid the preferred stock dividend of 2018 on 31st December, 2018. Instruction: Prepare the Cash Flow Statement of MoneyMaker Inc. for the year ending 31" December, 2018