Chapter 5 (TB2)- Cash Flow Assignment

Selected financial statement information and additional data for Johnston Enterprises is presented below. Prepare a statement of cash flows for the year ending December 31, 2019

Additional Information:

During the year, Johnston sold equipment with an original cost of HK$153,000 and accumulated depreciation of HK$119,000 and purchased new equipment for HK$272,000.

Johnston Enterprises Statement of Financial Position and Income Statement Data December 31, December 31, 2019 2018 HK$1,241,000 HK$1,122,000 Property, Plant, and Equipment Less: Accumulated Depreciation (476,000) (442,000) 765,000 680,000 Current Assets: Inventory 391,000 340,000 Accounts Receivable 238,000 306,000 Cash 153,000 119,000 Total Current Assets 782,000 765,000 Total Assets HK$1,547,000 HK$1,445,000 Equity: Share Capital-Ordinary HK$ 510,000 HK$ 467,500 Retained Earnings 374,000 340,000 Total Equity 884,000 807,500 Non-Current Liabilities: Bonds Payable 340,000 391,000 Current Liabilities: Accounts Payable 187,000 102,000 Notes Payable 51,000 68,000 Income Taxes Payable 85,000 76,500 Total Current Liabilities 323,000 246,500 Total Liabilities 663,000 637,500 Total Liabilities & Equity HK$1,547,000 HK$1,445,000 Sales Revenue HK$1,615,000 HK$1,513,000 Less Cost of Goods Sold 731,000 731,000 Gross Profit 884,000 782,000 Expenses: Depreciation Expense 153,000 136,000 Salaries and Wages Expense 391,000 357,000 Interest Expense 34,000 34,000 Loss on Sale of Equipment 17,000 0 Income Before Taxes 289,000 255,000 Less Income Tax Expense 119,000 102,000 Net Income HK$ 170,000 HK$ 153,000