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Cape Town Manufacturing had the following income statement and balance sheet items (in millions of rands,the South African currency): During 20X1,Cape Town Purchased fixed assets
Cape Town Manufacturing had the following income statement and balance sheet items (in millions of rands,the South African currency): During 20X1,Cape Town Purchased fixed assets for R315 million cash and sold fixed assets for their book value of R100 million. Operating expenses,interest,and taxes were paid in cash.No long-term debt was retired. Prepare a statement of cash flows for 20x1.Use the direct method for reporting cash flows from operating activities. Omit supporting schedules. Income Statement For the Year Ended December 31, 20X1 Sales Cost of goods sold Gross margin Operating expenses Depreciation Interest Income before taxes Income taxes Net income Cash dividends declared and paid Total increase in retained earnings R925 545) 380 (220) (60) (15) 85 (25) 60 (33) R 27 Balance Sheets December 31 20X1 Increase 20X0 (Decrease) Assets Cash Accounts receivable Inventories Total current assets Fixed assets, gross Accumulated depreciation Fixed assets, net Total assets 230 450 717 890 -(570) 320 R1,037 R 37 R 60 150 350 560 715 (550) 165 R725 R (23) 80 100 0 157 175 20) 155 R312 Liabilities and stockholders' equity Trade accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity R 515R300 180 245 R725 250 272 R1,037 R215 70 27 R312
Cape Town Manufacturing had the following income statement and balance sheet items (in millions of rands,the South African currency):
During 20X1,Cape Town Purchased fixed assets for R315 million cash and sold fixed assets for their book value of R100 million. Operating expenses,interest,and taxes were paid in cash.No long-term debt was retired.
Prepare a statement of cash flows for 20x1.Use the direct method for reporting cash flows from operating activities. Omit supporting schedules.
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