Question
Given the following information for Budget Incorporated prepare their statement of cash flows for December 31, 2020 using the indirect method. Also, Explain the process
Given the following information for Budget Incorporated prepare their statement of cash flows for December 31, 2020 using the indirect method. Also, Explain the process of preparing Indirect Cashflow and specify the differences between Indirect and Direct Cashflow methods.
| 2020* | 2019* |
Cash | 394.00 | 250 |
Accounts receivable | 88 | 90 |
Interest receivable | 12 | 15 |
Inventory | 90 | 95 |
Prepaid Expenses | 42 | 52 |
Non-current - Note |
|
|
receivable | 90 | 125 |
Property, plant and |
|
|
Equipment (Net of depreciation) | 325 | 330 |
|
|
|
Accounts payable | 20 | 40 |
Accrued liabilities | 45 | 56 |
Common Shares | 825 | 755 |
Retained Earnings | 105 | 60 |
Net income | 80 |
|
Depreciation expense | 2 |
|
Gain on sale of property | 1.5 |
|
| * in 000s |
|
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