Instructions

Prepare a statement of cash fl ows for the year ended December 31, 2020, using the indirect method.

Cash from operations : R$106,520

P14.11 (LO 2) The comparative statements of financial position for Amaral Reis SA as of December 31 are presented as follows. Amaral Reis SA Comparative Statements of Financial Position December 31 Assets 2020 2019 Land R$ 145,000 R$ 130,000 Equipment 228,000 155,000 Accumulated depreciationequipment (45,000) (35,000) Buildings 200,000 200,000 Accumulated depreciationbuildings (60,000) (40,000) Prepaid expenses 18,280 21,000 Inventory 154,550 142,000 Accounts receivable 46,000 62,000 Cash 62,520 45,000 Total R$749,350 R$680,000 Equity and Liabilities Share capitalordinary, R$1 par Retained earnings Bonds payable Accounts payable Total R$ 195,000 208,000 300,000 46,350 R$749,350 R$ 160,000 180,000 300,000 40,000 R$680,000 Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$ 20,000 were paid. 4. Net income for 2020 was R$48,000. 5. Equipment was purchased for R$95,000 cash. In addition, equipment costing R$22,000 with a book value of R$12,000 was sold for R$6,000 cash. 6. Issued 35,000 shares of R$ 1 par value ordinary shares in exchange for land with a fair value of R$35,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Cash from operations R$106,520