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Juiz-7_V1+0s - Excel Search Ahmad Abubakar 4A File Home insert Page Layout Formulas Data Review View Help Share Comments A Cut Calibri - 11 - A" A 28 Wrap Text General Normal Bad Good Neutral Z AutoSum O's Copy + Fill Paste BIU - BAA- Merge & Center - 5 - %9 Conditional Format as |Calculation Check Cell Explanatory ... Input Insert Delete Format Sort & Find & Ideas Sensitivity Format Painter Formatting - Table Clear Filter * Select Clipboard For Alignment Number styles Cell Editing Ideas Sensitivity A58 X ROUGH WORK A D E FI G H K M NO P R S The financial results for MA Corporation, a merchandiser, for the year ended December 31, 2019 are given below. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and ($) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow. Marks (a) Prepare a full statement of cash flows using the indirect method. 14 marks Marks (b) Prepare only the operating activities section using the direct method. 6 r MA Corporation MA Corporation MA CORPORATION COMPARATIVE BALANCE SHEET Statement of Cash Flows Statement of Cash Flows 4 DECEMBER 31. 2019 AND 2018 5 2019 2018 31-Dec-19 31-Dec-19 6 Assets 7 Cash 65.200 81.236 Cash flows from operating activities S S Cash flows from operating activities: S Accounts Receivable 58,710 48,12 Net income 9 Inventory 280.989 251,800 Adjustments to reconcile net income to net 10 Prepaid expenses 1.150 1.875 cash provided by operating activities: 11 Total current assets 406,049 383.036 12 Equipment 108,000 Net cash provided by operating activities 13 Accumulated Depreciation 36.625) 46,000) 14 Total assets 869 424 445,036 15 16 Liabilities and equity S S 17 Accounts payable 53,141 119,911 Net cash provided by operating activities (c) Compute Free cash flow. 2 marks 18 Notes payable 12,000 6.000 19 Total current liabilities 65,141 125,911 Cash flows from investing activities: 20 Long term notes payable 43,925 48,750 21 Total liabilities 109.066 174.661 22 Equity Net cash used in investing activities 23 Share Capital - Ordinary, $5 par value 167,750 150,250 24 Share Premium - Ordinary 47,500 Cash flows from financing activities: 25 Retained earnings 188,133 120,125 26 Total liabilities and equity 512,449 445.036 27 MA CORPORATION INCOME STATEMENT Instructions 1. SCF 2. FSA 3. Fill in the blanks +Juiz-7_V1+0s - Excel Search Ahmad Abubakar 4A File Home insert Page Layout Formulas Data Review View Help Share Comments A Cut Calibri - 11 - A" A 28 Wrap Text General Normal Bad Good Neutral Z AutoSum D's Copy + Fill Paste BIU - E- AA- Merge & Center - Conditional Format as Calculation Check Cell Explanatory ... Input Insert Delete Format Sort & Find & Ideas Sensitivity Format Painter Formatting - Table Clear Filter * Select Clipboard For Alignment Number styles Cell Editing Ideas Sensitivity A58 x vf ROUGH WORK D E G H M N p R S 22 Equity Net cash used in investing activities 23 Share Capital - Ordinary. $5 par value 167.750 150.250 24 Share Premium - Ordinary 47,500 Cash flows from financing activities: 25 Retained earnings 188,133 120,125 26 Total liabilities and equity 512.449 445.036 27 MA CORPORATION INCOME STATEMENT 28 FOR THE YEAR ENDED DECEMBER 31, 2019 29 Net cash used in financing activities 30 Sales 575.400 Net decrease in cash 31 Cost of Goods Sold 279,667 Cash balance at beginning of 2019 32 Gross Profit 295.733 Cash balance at end of 2019 33 Operating expenses 34 Depreciation expense 20,750 Noncash investing and financing activities: 35 Other expenses 132,500 (153.250) 36 Other income and expenses 37 Loss on sale of equipment (5,125) 38 Operating profit 137.358 39 Income tax expense 24.250 40 Net income 113.108 41 42 Additional Information for 2019 is given below: 43 a) Sold equipment costing $51,275, with accumulated depreciation of $30,125. 44 b) Purchased equipment costing $86,300 by paying $30,000 cash and signing a long-term note payable for the balance. 45 c) Borrowed $6,000 cash by signing a short-term note payable. 46 d) Paid $61,125 cash to reduce the long-term notes payable. 47 e) Issued ordinary shares for cash. The only share related transaction during the year was the new share issue. 48 () Declared and paid cash dividends. 49 50 51 Required: 52 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any non cash financing and investing activities in a note. 53 2. Prepare a the operating activities section of the statement of cash flows using the direct method. Disclose any non cash financing and investing activities in a note. 54 3. Compute the Free cash flow number. 56 Instructions 1. SCF 2. FSA 3. Fill in the blanks
