Answer to Question #126760 in Economics for Kgothatso

Question

Use the following data to construct a statement of cash flows using the direct method.
Balances 20X19 20X18
Statement of Financial Position
Cash
Accounts receivables
Prepaid insurance
Inventory
Fixed asset
Accumulated depreciation
Total assets
Accounts payable
Wages payable
Note payable
Capital
Retained earnings
Total liability and equity
Statement of P/L and other comprehensive income
Sales
Cost of sales
Depreciation expense
Insurance expense
Wage expense
Net income
4,000
25,000
5,000
37,000
316,000
(45,000)
342,000
18,000
4,000
173,000
88,000
59,000
342,000
200,000
(123,000)
(15,000)
(11,000)
(50,000)
1,000
14,000
32,500
7,000
34,000
270,000
(30,000)
327,500
16,000
7,000
160,000
84,000
60,500
327,500
Additional information
 Dividends declared and paid in 20X19 for R2,500
 R46,000 was paid for new fixed assets in 20X19
 Accounts payable was used only for inventory
 No debt was retired during 20X19

Answer 1

Dear Kgothatso, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order