Question
Question 5 (10 marks) Shown below are the balances of selected accounts of Fun Limited. 1 Jan 2021 31 Dec 2021 Accounts receivable $241,500 $273,000
Question 5 (10 marks)
Shown below are the balances of selected accounts of Fun Limited.
| 1 Jan 2021 | 31 Dec 2021 |
Accounts receivable | $241,500 | $273,000 |
Inventory | $252,000 | $262,000 |
Prepaid rent | $63,000 | $67,200 |
Accounts payable | $221,550 | $237,300 |
Salaries payable | $72,450 | $66,150 |
Net sales |
| $3,097,500 |
Cost of goods sold |
| $1,627,500 |
Operation expenses (including depreciation of $94,500) |
| $367,500 |
Gain from sale of equipment |
| $10,000 |
Prepare the partial statement of cash flow for the year ended 31 December 2021, showing the computation of net cash from operating activities by indirect method.
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