Question
The company was established in 1 January 20X5, the owner's capital consissted of cash contribution 200000$, and buildings(2 buildingsx25000$) 50000$. We bought necessary equipment (computers
The company was established in 1 January 20X5, the owner's capital consissted of cash contribution 200000$, and buildings(2 buildingsx25000$) 50000$. We bought necessary equipment (computers 5000$ and a car 8000$). The company hired employees with monthly salary 15000$ including taxes and social payments. There was made a prepayment in the amount of 12000$ for one year rent in advance. Bought office supplies from Pen&Co for 4500$, 1500$ by cash the rest amount on account. During a week company purchased goods amounting 90000$, plus freight in 4000$. Prior to payment there was found out some inappropriateness, and our company claimed for allowance 10000$. Allowance was accepted and the supplier offered a 10% discount in case the company paid by cash in 5 days. Our company do not pay within discounted period. 3 days later company concludes a contract for providing services amounting 60000$ for 1 year. We claimed the prepayment for the full amount and received it. Within a week we make sales 110000$. The customer pays 30000$ by cash for the rest amount writes out a note receivable by 12% annual for the delivered goods. We think that the amount of 1000$ will not be collected anyway. Depreciation expenses for the end of the month for buildings were 2000$, for computers 200$ and for car 500$. Company decided to sell 1 of the buildings for 27000$ and sold it. At the end of the month company paid immediately for utility expenses 300$, paid half of trade payables. Rent for the current month is recognized, the revenue for contract is recognized for current month, interest income is accrued. 300$ of office supplies were used. Salaries will be paid at early of the next month. 1000$ is written off as bad debt. Ending inventory 5000. Accrued and paid income tax of 20%. Prepare Cash flow statement using Indirect method
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