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Please help in preparing the cashflow statement using indirect method The following are the statement of financial position, the statement of comprehensive income and excerpts
Please help in preparing the cashflow statement using indirect method
The following are the statement of financial position, the statement of comprehensive income and excerpts from the notes to the financial statements for Pivotal Inc. (Pivotal), a public company, for the years ended December 31, 2018 and 2019: Pivotal Inc. Statement of financial position As at December 31 2019 2018 Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Property, plant and equipment Accumulated depreciation Total assets $ 256,000 $ 182,000 728,000 620,000 (192,000) (177,000) 658,000 516,000 42,000 35,000 2,652,000 2,445,800 (1.213,100) (1.150.200) $2.930,900 $2.471,600 Liabilities and shareholders' equity Liabilities Accounts payable $ 580,000 $ 627,000 Wages payable 48,400 104,000 Interest payable 20,500 96,000 Income taxes payable 22,000 58,000 Current portion of long-term debt 190,000 62,000 Dividends payable 88,000 42,000 Bonds payable 1.180.000 950.000 2.128.900 1.939.000 Shareholders' equity Common shares 380,000 280,000 Retained earnings 422.000 252.600 Total shareholders' equity 802.000 532,600 Total liabilities and shareholders' equity $2.930.900 $2.471,600 Pivotal Inc. Statement of comprehensive income For the year ended December 31, 2019 Sales Cost of goods sold Gross profit Depreciation expense Operating expenses Interest expense Income tax expense Bad debt expense Gain on disposal equipment Net income $4,982,200 (3.884.150) 1,098,050 (120,900) (520,000) (108,000) (91,750) (15,000) 16,000 $ 258.400 The following are excerpts from the notes to the financial statements for Pivotal for the years ended December 31, 2019 and 2018: Property, plant and equipment In 2019, Pivotal disposed of a piece of equipment that had a net book value of $120,000 and expanded its warehouse (included in property, plant and equipment) at a cost of $230,000 Long-term debt Pivotal issued $230,000 of long-term debt on July 1, 2019, at an interest rate of 5% with a 10-year term, to finance its warehouse expansion. Pivotal issued $128,000 of long-term debt on September 1, 2019, at an interest rate of 6.5% with a 15-year term, for general operating purposes. Required: Prepare the statement of cash flows of Pivotal for the year ended December 31, 2019
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