PROBLEM 1 12 POINTS 20 MINUTES

As you can see, Mix Ltd.'s cash flow statement is presented incorrectly.

MIX LTD.

Statement of Cash Flows

for the year ended December 31, 20X9

Cash received from customers $444,500

Investing activities

Financial expenses paid (22,000)

Payment of dividends (4,000)

Disposal of furniture 19,000

Cash flows from investing activities 437,500

Operating activities

Cash and cash equivalents at beginning of year 28,000

Payments to suppliers (101,000)

Cash flows from operating activities (73,000)

Financing activities

Repayment of mortgage loan (8,000)

Acquisition of a license (40,000)

Selling and administrative expenses paid (33,000)

Income taxes paid (43,000)

Movable hypothec taken out 10,000

Cash flows from financing activities (114,000)

Cash and cash equivalents at end of year* $250,500

*Cash and cash equivalents correspond to cash on the balance sheet.

Work to be done

Prepare, in accordance with accounting standards, the statement of cash flows for Mix Ltd. for the year ended December 31, 20X9.