2. Presented below are the 2021 income statement and comparative balance sheets for Kenne Diagnostics, Inc....

 

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2. Presented below are the 2021 income statement and comparative balance sheets for Kenne Diagnostics, Inc. Sales revenue Service revenue Total revenue Kenne Diagnostics, Inc. Income Statement For the year Ended December 31, 2021 (S in thousands) $ 17,300 3.500 Operating expenses: Cost of goods sold Selling expense General and administrative expenses Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Assets Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Kenne Diagnostics, Inc. Balance Sheet Information (S in thousands) Dec. 31, 2021 Liabilities and shareholders' equity Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due December 31, 2024) Common stock Retained earnings Total liabilities and shareholders' equity 6,600 2,750 1.400 Additional information for the 2021 fiscal year ($ in thousands): a. Cash dividends of $1,500 were declared and paid. b. Equipment costing $5,000 was purchased with cash. $ 9,400 3,850 5,000 200 15,500 (6.100) $ 27,850 $ 2,300 200 900 600 4,000 12,000 7,850 S 27,850 20,800 10.750 10,050 250 9,800 2,450 $7,350 Dec. 31, 2020 S 3,600 3,200 4,000 350 12,000 (5.500) $17.650 $ 2,100 0 650 900 0 12,000 2,000 $17.650 c. Equipment with a book value of $500 (cost of $1,500 less accumulated depreciation of $1,000) was sold for $500. d. Depreciation of $1,600 is included in operating expenses. Required: a. Prepare Kenne Diagnostics, Inc.'s 2021 statement of cash flows, using the indirect method to present cash flows from operating activities b. IAS No. 7 [Statement of Cash Flows "International Accounting Standard No. 7 (IASCF), as amended effective Jan. 1, 2016] allows more flexibility to companies to prepare the statement of cash flows. How does IFRS differ from US-GAAP in terms of the classification of items in a statement of cash flows? (20 points). 2. Presented below are the 2021 income statement and comparative balance sheets for Kenne Diagnostics, Inc. Sales revenue Service revenue Total revenue Kenne Diagnostics, Inc. Income Statement For the year Ended December 31, 2021 (S in thousands) $ 17,300 3.500 Operating expenses: Cost of goods sold Selling expense General and administrative expenses Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Assets Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Kenne Diagnostics, Inc. Balance Sheet Information (S in thousands) Dec. 31, 2021 Liabilities and shareholders' equity Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due December 31, 2024) Common stock Retained earnings Total liabilities and shareholders' equity 6,600 2,750 1.400 Additional information for the 2021 fiscal year ($ in thousands): a. Cash dividends of $1,500 were declared and paid. b. Equipment costing $5,000 was purchased with cash. $ 9,400 3,850 5,000 200 15,500 (6.100) $ 27,850 $ 2,300 200 900 600 4,000 12,000 7,850 S 27,850 20,800 10.750 10,050 250 9,800 2,450 $7,350 Dec. 31, 2020 S 3,600 3,200 4,000 350 12,000 (5.500) $17.650 $ 2,100 0 650 900 0 12,000 2,000 $17.650 c. Equipment with a book value of $500 (cost of $1,500 less accumulated depreciation of $1,000) was sold for $500. d. Depreciation of $1,600 is included in operating expenses. Required: a. Prepare Kenne Diagnostics, Inc.'s 2021 statement of cash flows, using the indirect method to present cash flows from operating activities b. IAS No. 7 [Statement of Cash Flows "International Accounting Standard No. 7 (IASCF), as amended effective Jan. 1, 2016] allows more flexibility to companies to prepare the statement of cash flows. How does IFRS differ from US-GAAP in terms of the classification of items in a statement of cash flows? (20 points).

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Kenne Diagnostics Inc Statement of Cashflows For the Year Ended December 31 2021 in Thousands Cashfl... View the full answer