Why Loss on disposal of land is 1,000 ?

nhub blow omgupool 114.7 (LO 2, 3) Meera Ltd.'s comparative statements of financial position are presented below. Prepare stater and compute anoidud Meera Ltd. Comparative Statements of Financial Position to December 31 RRS 2020 2019 Land 20,000 26,000 Buildings 12 batan 70,000 70,000 Accumulated depreciation-buildings (15,000) (10,000) Accounts receivable 20,800 23.400 Cash Perett Jamey 17,660 10,700 Total December 113,460 120,100 des Share capital-ordinary 75,000 72.000 Retained earnings 26,090 20,000 19 and wages Accounts payable 12,370 28.100 Total 113,460 120,100 08.2013 000,00 3 Additional information: 000.EE 1. Net income was 22.590. Dividends declared and paid were 16,500. 00 2. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for 5,000. Instructions 4. Prepare a statement of cash flows for 2020 using the indirect method. D. Compute free cash flow. to not able 00.00 EXERCISE 14.7 (a) MEERA LTD. Statement of Cash Flows For the Year Ended December 31, 2020 22,590 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense.... ......................... 5,000 L Loss on disposal of land ............... 1,000 Decrease in accounts receivable ............... 2,600 Decrease in accounts payable ................. (15.730) Net cash provided by operating activities. (7130) 15,460 Cash flows from investing activities . Sale of land... 5,000 Cash flows from financing activities Issuance of ordinary shares ...... Payment of dividends ............. Net cash used by financing activities ........... 3,000 (16,500) (13,500) Net increase in cash ...... Cash at beginning of period. Cash at end of period ... 6,960 10,700 17,660 (b) 15,460 - 0 - 16,500 = (1,040)