Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Any Expert can solve this for me ( cash flow statement ) using indirect method The following data are taken from the records of Al

Any Expert can solve this for me ( cash flow statement ) using indirect method image text in transcribed
image text in transcribed
The following data are taken from the records of Al Zmil Company \begin{tabular}{|l|l|l|} \hline & 31 December, 2021 & 31 December, 2020 \\ \hline Cash & $ 30,000 & 20,000 \\ \hline Current assets other than cash & 170,000 & 116,000 \\ \hline Long-term investments & 20,000 & 106,000 \\ \hline Plant assets & & \\ \cline { 2 - 3 } & 670,000 & 430,000 \\ \hline & $ & $ \\ \hline & 890,000 & 672,000 \\ \hline Accumulated & 40,000 & 80,000 \\ \hline depreciation & 80,000 & 44,000 \\ \hline Current liabilities & 150,000 & \\ \hline \end{tabular} Additional Information: 1. Held- for-collection investments carried at a cost of $86,000 on 31 December 2020, were sold in 2021 for $68,000. The loss was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $120,000 and were 80% depreciated were sold in 2021 for $16,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income reported on the income statement for the year was $118,000. 4. Dividends paid amounted to $20,000. 5. Depreciation charged for the year was $56,000. Required: Prepare a statement of cash flows for the year 2021 using the indirect method in proper form. Show your workings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen

6th Edition

0324302959, 9780324302950

More Books

Students also viewed these Accounting questions