Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marchant Ltd. reported the following abbreviated statement of financial position and statement of income for 2020. MARCHANT LTD. Comparative Statement of Financial Position Dec. 31,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Marchant Ltd. reported the following abbreviated statement of financial position and statement of income for 2020. MARCHANT LTD. Comparative Statement of Financial Position Dec. 31, 2020 Dec. 31, 2019 Cash $ 56,000 $ 70,000 Accounts receivable 122,000 137,000 Inventory 316,000 283,000 Property, plant, and equipment 696,000 641,000 Less: Accumulated depreciation (264,000) (227,000) Total assets $ 926,000 $904,000 Accounts payable $82,000 $ 83,200 Wages payable 7,000 13,800 Loan payable 311,405 393,000 Common shares 209,000 144,000 Retained earnings 316,595 270,000 Total liabilities and shareholders' equity $ 926,000 $ 904,000 MARCHANT LTD. Statement of Income For the year ended December 31, 2020 Sales revenue $ 455,000 Cost of goods sold 237,000 Gross profit 218,000 Other expenses: Supplies expense $ 12,000 Depreciation expense 37,000 Wages expense 107,000 Other operating expenses 3,000 Interest expense 18,000 177,000 41,000 Other income 15,000 Net income $ 56,000 Prepare a statement of cash flows for Marchant Ltd. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Marchant Ltd. Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 $ $ Supplemental Cash Flow information: Cash paid for interest $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

More Books

Students also viewed these Accounting questions

Question

=+ Who are the buyers/users of the products abroad?

Answered: 1 week ago