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Presented below are the financial statements of The ABC company appears below: 11. Presented below are the financial statements of The ABC Company appears below:
Presented below are the financial statements of The ABC company appears below:
11. Presented below are the financial statements of The ABC Company appears below: Thc ABC Company Comparative Statements of Financial Position December 31, 2021 Assets Equipment Accumulated depreciationequipment Long-term investments Prepaid expenses Inventory Accounts receivable Cash Total Equity and Liabilities Share capitalordinary Retained earnings Bonds payable Accounts payable Income taxes payable Total The ABC Company Income Statements 2021 E 265,000 (47,000) 140,000 29,300 1 12,500 92,800 1009350 E692,950 E 220,000 234,450 110,000 112,000 16,500 E692,950 For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses, excluding depreciation Depreciation expense Income from operations Interest expense Gain on disposal of plant assets Income before income taxes Income tax expense Net Income Additional data; E392,780 135,460 (12,410) (45,000) (4,730) 5,000 (27,280) 2020 E 242,000 (52,000) 114,000 26,000 102,850 33,000 489400 514,750 175,000 105,450 150,000 67,300 17,000 514,750 257,320 199,910 200,180 E172,900 l. New equipment costing 80,000 was purchased for cash during the year. 2. Old equipment having an original cost of 57,500 and accumulated depreciation of 50,000 was sold for 12,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of 43,900 was declared and paid during the year. Required: l) (20 points) Prepare a statement of cash flows for The ABC Company at the year ended December 31, 2021, using the indirect method. 2) (10 points) Prepare the operating activities section of the statement cash flows, using the indirect method under the IAS7. 3) (5 points) Prepare the operating activities section of the statement cash flows, using the direct method.
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