Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 (9 marks) Financial Jungle Inc. (FJI), a public company, has gathered the following information to prepare its statement of cash flows for

image text in transcribed

Question 3 (9 marks) Financial Jungle Inc. (FJI), a public company, has gathered the following information to prepare its statement of cash flows for the year ended December 31, 2020: New equipment costing $55,000 was purchased during the year by issuing a $25,000 note payable and paying the balance in cash. Old equipment with an original cost of $75,000 and accumulated depreciation of $36,000 was sold at a loss of $2,500 during the year. FJI reported net income of $125,000 for the year. FJI had beginning retained earnings for the year of $623,500 and ending retained eamings of $625,000. FJI reported depreciation expense of $67,450 for the year. FJI issued bonds during the year with a face value of $300,000 at a premium of $11,250. FJI paid $132,000 during the year for a 25% Interest in one of its suppliers. FJI repaid a $25,000 bank loan during the year. FJI reports dividends paid as a financing activity in its statement of cash flows. Required: a) Determine the net cash provided by used in) investing activities to be reported on FJI'S 2020 statement of cash flows. (3 marks) b) Determine the net cash provided by (used in) financing activities to be reported on FJI'S 2020 statement of cash flows. (3 marks) c) Using IFRS, dicuss the similarities and differences between the direct and indirect methods used to report cash flows arising from operating, investing and financing activities. (3 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th edition

978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286

More Books

Students also viewed these Accounting questions

Question

What role do inventories play in the business cycle?

Answered: 1 week ago

Question

Write down the Limitation of Beer - Lamberts law?

Answered: 1 week ago

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago

Question

Given find the value of k. es 1 e kx dx = 1 4'

Answered: 1 week ago