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

[A]

731,000

700,000

Adjustments to reconcile net income to cash used in operating activities:

2,691,000

2,220,000

Depreciation expense

[B]

Equity

Gain/Loss on disposal of plant

[C]

Share capital, ordinary at $1 par

800,000

600,000

Gain/Loss on disposal of equipment

[D]

Share premium, ordinary

319,000

200,000

Increase/Decrease in merchandise inventory

[E]

Share premium, treasury

-

-

Increase/Decrease in accounts receivable

[F]

Retained earnings

900,000

776,000

Increase/Decrease in accounts payable

[G]

Less: Treasury shares

100,000

-

Increase/Decrease in accrued liabilities

[H]

Total equity

1,919,000

1,576,000

Increase/Decrease in tax payable

[I]

Net cash provided /used by operating activities

[J]

Cash flows from investing activities:

Non-current liabilities

Sales of plant

[K]

8% bonds payable

200,000

400,000

Sales of equipment

[L]

Purchase of plant

[M]

Current liabilities

Purchase of equipment

[N]

Accounts payable

475,000

172,000

Net cash provided/ used by investing activities

[O]

Accrued liabilities

72,000

52,000

Cash flows from financing activities

Income taxes payable

15,000

10,000

Repayment of bonds

[P]

Other payables

10,000

10,000

Issuance of ordinary shares

[Q]

572,000

244,000

Sales of treasury shares

[R]

Total liabilities

772,000

644,000

Purchase of treasury shares

[S]

Total equity and liabilities

2,691,000

2,220,000

Payment of dividends

[T]

Net cash provided used by financing activities

[U]

* No comma is needed for input of answers. (eg. five thousand should be input as 5000)

Net increase in cash

[V]

please input negative figure with a negative sign , eg -5000

Cash at the beginning of the year

[W]

Cash at the end of the year

[X]