Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer asap Question 1 Recent financial statements for Emerald Limited appear below as well as income statement for the latest year. Emerald Statement of Financial
answer asap
Question 1 Recent financial statements for Emerald Limited appear below as well as income statement for the latest year. Emerald Statement of Financial Position 2020 and 2021 May 31 2020 2021 Assets Cash 24 000 22 300 7 500 6 400 Accounts receivables Inventories 30 100 39 900 Long-term investments 8 000 Plant and equipment 120 000 132 500 Accumulated depreciation (46 800) (50 800) Total Assets 142 800 150 300 Capital and Liabilities Capital and reserves: Common ock 00 000 108 000 Retained earnings 38 600 38 600 Current Liabilities Accounts payables 2 400 1 600 Accrued liabilities 1 800 2 100 Total Assets and Liabilities 142 800 150 300 Emerald Limited Income Statement for Year Ended 2021 May 31 Sales $102 000 Less cost of goods sold 73 000 Gross margin 29 000 Less operating expenses 14 000 Income before taxes 15 000 4 500 Less income taxes Net income 10 500 NB. The long-term investment was sold for $8 000 cash. Dividends of $10 500 were declared and paid during the year. 22/05 The Council of Community Colleges of Jamaica ACCT3801 Required: A. A statement of cash flows for Emerald for year ended 2021 May 31. Use the indirect method. (16 marks) B. Explain briefly TWO (2) ways in which a statement of cash flow is of use to a potential investor in Emerald Limited. (4 marks) (Total 20 marks) PageStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started