QUESTION 1

1. Statement of cash flows						* No comma is needed for input of answers. (eg. five thousand should be input as 5000) ,
   Below is the financial information for TRIALCompany Limited for the year ended 31 December						no marks will be awarded if input as 5,000
   						please input negative figure with a negative sign , eg -5000
   TRIAL Company Limited						Additional information
   Statement of Financial Position						i. Sold plant that cost $245,000 and a book value at the date of disposal of $65,000 for $54,000.
   31 December 2019						ii. Sold equipment that cost $105,000 and a book value at the date of disposal of $35,000 for $45,000.
   		2019		2018		iii. Interest on all bonds is paid on 30 June and 31 December each year.
   	$	$	$	$		$160,000 of the 8% bonds was redeemed on 31 December 2019.
   Property, plant and equipment						The remaining $40,000 of the 8% bonds was converted to ordinary share capital of $40,000.
   Plant	2,500,000		2,190,000			iv. The company issued additional ordinary share on 1 February 2019.
   Less: Acc. Depreciation-plant	-904,000	1,596,000	-852,000	1,338,000		v. An interim dividend of $110,000 was paid on 30 June 2019 to holders of all the shares in issue at that date.
   						vi. In July 2019, the company bought 40,000 treasury shares at cost of $2.5 each share.
   Equipment	420,000		210,000
   Less: Acc. Depreciation-equipment	-56,000	364,000	-28,000	182,000		TRIAL Company Limited
   Current assets						Statement of Cash Flows
   Merchandise inventory	360,000		324,000			for the year ended 31 December 2019
   Accounts receivable, net	344,000		360,000			Cash flows from operating activities
   Cash and cash equivalents	27,000		16,000			Net income
   		731,000		700,000		Adjustments to reconcile net income to cash used in operating activities:
   		2,691,000		2,220,000		Depreciation expense
   Equity						Gain/Loss on disposal of plant
   Share capital, ordinary at $1 par	800,000		600,000			Gain/Loss on disposal of equipment
   Share premium, ordinary	319,000		200,000			Increase/Decrease in merchandise inventory
   Share premium, treasury	-		-			Increase/Decrease in accounts receivable
   Retained earnings	900,000		776,000			Increase/Decrease in accounts payable
   Less: Treasury shares	100,000		-			Increase/Decrease in accrued liabilities
   Total equity		1,919,000		1,576,000		Increase/Decrease in tax payable
   						Net cash provided /used by operating activities
   						Cash flows from investing activities:
   Non-current liabilities						Sales of plant
   8% bonds payable		200,000		400,000		Sales of equipment
   						Purchase of plant
   Current liabilities						Purchase of equipment
   Accounts payable	475,000		172,000			Net cash provided/ used by investing activities
   Accrued liabilities	72,000		52,000			Cash flows from financing activities
   Income taxes payable	15,000		10,000			Repayment of bonds
   Other payables	10,000		10,000			Issuance of ordinary shares
   		572,000		244,000		Sales of treasury shares
   Total liabilities		772,000		644,000		Purchase of treasury shares
   Total equity and liabilities		2,691,000		2,220,000		Payment of dividends
   						Net cash provided used by financing activities
   * No comma is needed for input of answers. (eg. five thousand should be input as 5000)						Net increase in cash
   please input negative figure with a negative sign , eg -5000						Cash at the beginning of the year
   						Cash at the end of the year