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Using the following data: 2000 1999 Cash $4,000 $14,000 Accounts receivable 25,000 32,500 Prepaid insurance 5.000 7.000 Inventory 37,000 34,000 Fixed assets 316,000 270,000 Accumulated
Using the following data: 2000 1999 Cash $4,000 $14,000 Accounts receivable 25,000 32,500 Prepaid insurance 5.000 7.000 Inventory 37,000 34,000 Fixed assets 316,000 270,000 Accumulated Depreciation (45,000) (30,000) Total assets 342.000 327,500 Accounts payable $18.000 $16.000 4.000 7.000 Wages payable Note payable 173,000 160,000 Capital stock 88,000 84.000 Retained earings 59,000 60,500 Total Liabilities & Equity 342,000 327,500 2000 Sales $200,000 Cost of goods sold (123,000) Depreciation expense (15,000) Insurance expense (11.000) Wage Expense (50,000) Net Income 1,000 Pure College of Technology 200 & 300. 1450 Midland Avenue Toronto, ON MIP 428 Tel: 416-498-5558 I PURES PURES COLLEGE OF TECHNOLOGY During the year 2000 declared and paid dividends of $2,500, during 2000, ABC paid $46.000 in cash to acquire new fixed assets. The accounts payable was used only for inventory. No debt was retired during 2000. Required: Construct a statement of cash flows. (4 marks)
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