Question
Question 1 (5 marks): Cash flow statement Continental LLC, UAE uses indirect method for preparing its statement of cash flows. It reported a net income
Question 1 (5 marks): Cash flow statement Continental LLC, UAE uses indirect method for preparing its statement of cash flows. It reported a net income of AED 200,000 for the year 2021. Cash at the beginning of year was AED 350,000 During 2021 the working capital accounts were changed as follows: Increase in accounts receivable: AED 44,000 Increase in accounts payable: AED 32,200 Increase in inventory: AED 29,600 Purchase of land: AED 300,000 Sale of machinery: AED 50,000 Issuance of ordinary shares: AED 200,000 Payment of dividend: AED 75,000 The depreciation expense was AED 68,000 for year 2021. Required: Compute net cash provided (used) by operating activities, investing and financing activities using indirect method.
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