E14.7 (LO2,3)

Aug. 23 Dec. 31 Dividends (cash) Net income Debit Credit 17,000 From the postings in the accounts, indicate how the information is reported on a statement o cash flows using the indirect method, The loss on disposal of plant assets was 5.000. (Hint: Cos of equipment constructed is reported in the investing activities section as a decrease in cash o- Instructions 53.000.) Balance 105,000 88,000 155,000 67,000 E14.7 (LO 2, 3) Meera Ltd.'s comparative statements of financial position are presented below. Meera Ltd. Comparative Statements of Financial Position December 31 2019 Land Buildings Accumulated depreciation-buildings Accounts receivable 2020 20.000 70.000 (15,000) 20,800 17.660 113,460 Cash Total 26,000 70,000 (10,000) 23,400 10.700 120,100 72,000 20,000 28.100 120,100 Share capital-ordinary Retained earnings Accounts payable Total DBO 75,000 26,090 12,370 113,460 Additional information: 1. Net income was 22,590. Dividends declared and paid were 16,500. 2. All other changes in non-current account balances had a direct effect on cash flows, exc the change in accumulated depreciation. The land was sold for 5,000. Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Compute free cash flow