Question

Question 1

Item	2019	2020
Sales		258,500
Interest Income		6,200
Rent Expense		11,000
Tax Payable	1,500	2,100
Interest Payable	2,800	2,100
Electricity Expense		2,500
Prepaid Expenses	5,200	7,100
Doubtful Debts Expense		3,100
Accounts Payable	21,900	18,300
General Expenses		26,000
Insurance Expense		3,200
Inventory	71,500	69,100
Interest Expense		11,100
Depreciation Expense - Buildings		21,000
Interest Receivable	200	450
Sales Returns		4,800
Accounts Receivable	41,600	47,500
Discount Received		9,100
Wages Expense		31,900
Expenses Payable	5,700	6,200
Cost of Sales		91,300
Discount Allowed		3,700
Tax Expense		12,500
Depreciation Expense – Equipment		9,100

Required

Complete the cash flow statement on page 5 of this document. Please show your calculations on the document. You can take a photo of your calculations if you do them by hand and then insert the photo into this document, but I want to see your calculations as well as your answers to both questions.

Answer 1

First we prepare the income statement and compute product ie,

Next we prepare the cash flow statement based on the avaliable information :

Taxes paid in cash = 1500+12500-2100 = 11,900