Comparative information as at 31 December 2019 and 31 December 2020 for bale tsason

Comparative Statements of Financial Position

As at 31 December 2019

2019

Assets

Cash at bank

Accounts receivable

Inventory

Machinery

Accumulated depreciation - Machinery

Buildings

Accumulated depreciation - buildings

Land

Total assets

Liabilities and equity

Accounts payable

Interest payable

Income tax payable

Wages payable

Loan payable - (due in 5 years)

Share capital

Retained earnings

Total liabilities and equity

84 000

192 000

48 000

280 000

(100 000)

365 000

(170 000)

125 000

$824 000

$110 000

1500

11 000

17 500

90 000

250 000

344 000

$824 000

2020

$ 86 000

169 000

67 000

280 000

(120 000)

590 000

(200 000)

50 000

$922 000

$126 000

500

8 000

6 000

133 500

250 000

398 000

$922.000

Additional information:

Gross profit for the year ended 31 December 2020 was $321,000 and consisted of sales

$ 887,000 and cost of sales $566,000.

Profit for the year ended 31 December 2020 was $62 500, after deducting expenses of $258 500 from the gross profit.

(c)

Expenses of $258 500 included depreciation on buildings and on machinery, a loss on sale of land, wages expense of $176,500, interest expense of $10,000 and income tax expense of $8,000.

During the year ended 31 December 2020, cash dividends were paid.

Building extensions were paid for during the year and a block of land, costing $75,000 was sold for $61,000.

No Machinery was purchased or sold during the year.

Required:

Prepare the Statement of Cash Flows for Baine Ltd for the year ended 31 December 2020 using the direct method.