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I need the answer of this question please do it fast in just 20 minutes. Astro Manufacturing Ltd. has prepared a comparative statement of financial
I need the answer of this question please do it fast in just 20 minutes.
Astro Manufacturing Ltd. has prepared a comparative statement of financial position, astatement of income, and some additional information as follows: Astro Manufacturing Ltd. Statement of Financial Position As at December 31st 2020 2019 Assets Current Assets: Cash Accounting receivable Total Current Assets Equipment Accumulated Depreciation, Equipment 117,000 165,000 282,000 1,450,000 (650,000) 1,082,000 102,000 198,000 300,000 1,250,000 (675,000) 875,000 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable Dividends payable Total Current Liabilities Common shares Retained earnings 147,000 25,000 172,000 75,000 835,000 1,082,000 150,000 20.000 170,000 75,000 630,000 875,000 Astro Manufacturing Ltd. 1,082,000 875,000 Astro Manufacturing Ltd. Statement of Income For the Year Ended December 31, 2020 1,530,000 Sales Revenue Expenses Wage ex pense Utilities expense Depreciation expense Rent expense Interest expense Earnings from Operations Loss on sale of equipment Earnings before income tax Income tax expense Net Income 1,125,000 19,000 65,000 36,000 8,000 277,000 10,000 267,000 33,000 234,000 Additional information: 1. During the year, equipment that had originally cost $125,000 was sold for $25,000. Required: (7 marks - 15 minutes) Prepare a statement of cash flows using the indirect method. No heading is required for the statement (ie just start with cash flows from operating activities)Step by Step Solution
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