Cash 36,000 2,000 Accounts receivable 21,000 39,000 Inventory 5,700 49,000 Supplies 2,500 3,000 65,200 93,000 Land...

Cash	36,000	2,000
Accounts receivable	21,000	39,000
Inventory	5,700	49,000
Supplies	2,500	3,000
	65,200	93,000

Land	1,100,000	800,000
Building	1,150,000	900,000
Accumulated depreciation – building	(276,000)	(180,000)
Vehicles	15,000	28,000
Accumulated depreciation – vehicles	(3,600)	(5,600)
	1,985,400	1,542,400
	$2,050,600	$1,635,400


Accounts payable	38,000	49,000
Dividends payable	25,000	1,300
Current bank loan	55,000	55,000
	118,000	105,300
Non-current bank loan	1,700,600	1,320,100
	1,818,600	1,425,400

Common shares	120,000	100,000
Retained earnings	112,000	110,000
	232,000	210,000
	$2,050,600	$1,635,400

During 2018 the following occurred:

Land costing $300,000 was purchased in 2018 for $220,000 cash and by issuing common shares of $80,000
A building that had an original cost of $348,000 and accumulated depreciation of $128,000 was sold for a loss of $53,000
A vehicle was sold during the year, the vehicle had a cost of $21,000, accumulated depreciation of $3,000 and was sold for $6,800 in cash
The vehicle that was purchased in 2018 was purchased by obtaining a bank loan
$137,0000 was paid towards the bank loan in 2018
The company declared dividends of $32,000 in 2018
Common shares were bought back by the company during 2018

Prepare the statement of cash flows for 2018 using the indirect method.

Expert Solution

Cash Flow statement
Particulars					Amount
cash flow from operating activities
retained earning					$ 2,000.00
Dividend payable					$ 32,000.00
net profit					$ 34,000.00
loss on sale of vehicle					$ 11,200.00
loss on sale of building					$ 53,000.00
decrease in accounts receivable					$ 18,000.00
decrease in inventory					$ 43,300.00
depreciation on vechile					$ 1,000.00
Decrease in supplies					$ 500.00
Depreciation on building					$ 2,24,000.00
decrease in accounts payable					$ -11,000.00
net cash flow from operating activities					$ 3,74,000.00
Cash flow from investing activities
sale of building (348000-128000-53000)					$ 1,67,000.00
sale of vehicle					$ 6,800.00
purchase of land (800000-1100000+80000)					$ -2,20,000.00
purchase of building (900000-348000-1150000)					$ -5,98,000.00
purchase of vechile (28000-21000-15000)					$ -8,000.00
net cash flow from investing activities					$ -6,52,200.00
Cash flow from financing activities
repurchase of common stock (120000-100000+80000)					$ -60,000.00
bank loan (1700600+1370000-1320100)					$ 5,17,500.00
payment of bank loan					$ -1,37,000.00
dividend paid (25000-32000-1300)					$ -8,300.00
net cash flow from financing activities					$ 3,12,200.00
net cash flow (A)+(B)+©					$ 34,000.00
Beginning cash balance					$ 2,000.00
ending cash balance					$ 36,000.00

ekkarill92 answered 1 year ago

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