Question
The comparative budget of Al-Saada Company for the years 2019 and 2020 has been given to you as follows: Assets December 31, 2019 December 31,
The comparative budget of Al-Saada Company for the years 2019 and 2020 has been given to you as follows: Assets December 31, 2019 December 31, 2020 cash 3000 5000 Accounts receivable, net 70000 82000 Goods 35000 33000 Arrest papers 12000 1000 Prepaid expenses 10000 8000 Machines 30000 45000 Machine depreciation accrual (10000) (12000) Land 450,000 500,000 Total 600000 662000 Obligations and Shareholders' Equity Accounts Payable 45000 42000 Long term notes 50000 43000 Accrued expenses 3000 2000 Revenue received in advance 4000 2500 Short term notes payable 7000 5000 Capital 480000 555000 Retained earnings 11000 12500 Total 600000 662000 If you know the following: 1. The company increased the capital by issuing 75,000 shares with a nominal value of 1 dinars per share. 2. The net profit for the year 2020 amounted to 35,000 dinars, including the gains from selling machines in the amount of 1,500 dinars 3. The machines were sold for 2500 dinars, while their cost was 9000 dinars, and the sum of their depreciation was 8000 dinars 4. New machines were purchased during the year at an amount of 24,000 dinars in cash. 5. Cash dividends during the year 2020 amounted to 20,000 dinars. Required: Prepare a statement of cash flows according to the indirect method for the year 2020.
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