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The comparative statements of financial position for the years 2017 and 2018 and a summarized income statement for the year ending 2018 of Genie Marketing
The comparative statements of financial position for the years 2017 and 2018 and a summarized income statement for the year ending 2018 of Genie Marketing Pte Ltd are shown below. Genie had no non-cash financing and investing transactions during 2018. During the year, there were no sales of land or machinery. Genie Marketing Pte Ltd Comparative Statements of Financial Position 31 December 2018 2017 Current assets: Cash $ 21,000 $ 18,700 Accounts receivable 46,500 43,100 Inventory 84,300 89,900 Non-current assets: Land 35,100 10,000 146,200 123,700 Machinery Accumulated depreciation machinery... (45,300) (30,000) Total assets .... $287,800 $255,400 Current liabilities: Accounts payable $ 31,100 $ 29,800 Accrued marketing expenses 18,100 18,700 Non-current liabilities: Bank loan. 55,000 65,000 Equity: Share capital. 131,100 122,300 Retained earnings 52,500 19,600 Total liabilities and equity $287,800 $255,400 Genie Marketing Pte Ltd Income Statement for the year ending 31 December 2018 Revenues: Sales revenue $438,000 Interest revenue..... 11,700 Total revenues...... 449,700 Expenses: Cost of goods sold ......... $205,200 Marketing expenses. 49,700 Other expenses 91,700 Interest expense.... 24,600 Income tax expense 16,900 Total expenses... 388,100 Net profit ........ $ 61,600 Required: Prepare a statement of cash flows for Genie Marketing Pte Ltd at 31 December 2018 using the direct method. Show all workings. (15 marks)
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