Balance sheet per 31-12-2018 (in )

Building 430,000 Share Capital 344,000

Equipment 160,000 Reserves 161,000

Inventory 48,800 5% Mortgage 260,000

Account Receivable 22,800 4% Long term loan 100,000

Cash 209400 Interest payable 6,000

871,000 871,000

During the year 2019 the following events take place:

• Total receipts from customer transactions is 1,300,000.
• At the end of 2019 the outstanding receivables are 26,400, including 3,000 owned by a customer, who has filled for bankruptcy. The management of Teixeira Trades ltd has serious doubts about ever receiving money.
• Total purchase are 1,035,600. On 31 December 2019 the inventory is 36,300. All purchases are paid in cash.
• On 1 July 2019 Teixeira trades ltd repays 10,000 on the mortgage loan. On the same date the interest costs for the mortgage loan will be paid.
• A 16,000 repayment on the long term bank loan will be done at the end of the year, together with the interest for the long term bank loan.
• The building was purchased on the 1^st of January 2009 and will be depreciated in 30 years, straight-line. The residual value will be 10% of the purchase value. Depreciation on equipment is 23,000 a year.
• Other operating costs are 80,000. All operating costs are paid in cash.
• Income tax is 20% of net profit and will be paid in 2020.
• The company paid out 40,000 in dividends.

................................................................................................................................................................

1. 1. Calculate the amount of interest that is paid in 2019

2. 2. calculate the yearly depreciation of the building

3. Prepare the profit and loss account for 2019
4. Draw up the balance sheet as at 31-12-2019
5. Draw up the cash flow statement indirect method. Mention clearly whether it is a cash inflow (+) or a cash outflow (-).
6. Draw up the cash flow statement direct method. Mention clearly whether it is a cash inflow (+) or a cash outflow (-).