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Additional information: Operating expense above is inclusive of depreciation expense $18,000 and loss on disposal of equipment $1,000. Company declared and paid dividend of $32,000.
Additional information:
- Operating expense above is inclusive of depreciation expense $18,000 and loss on disposal of equipment $1,000.
- Company declared and paid dividend of $32,000.
- An equipment with cost: $20,000 and net book value of $18,000 was sold. During the year, company also acquired an equipment costing $180,000 for cash.
- Debenture was issued during the year. It was decided there will not be any interest on debenture cost incurred in the year of issuance.
- Company also issued ordinary share of $100,000 which was fully paid on 1 June 2020. Entire proceeds from this issuance were then used to acquire a land on 1 August 2020.
Required:
- Prepare Statement of cashflow for the year ended 31 December 2020 using the indirect method.
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