Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over...
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Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 2018. Cash account balance at December 31, 2017, was RM12,020 and the ending cash balance at December, 2018 is RM31,240. Current Asset Accounts Change Amount (RM) 19,220 Cash Increased Credit card receivables Increased 680 Increased 1,500 Accounts receivable Inventories Increased 1,200 Prepaid expenses Decreased 800 Current Liability Accounts Change Amount (RM) Accounts payable Decreased 2,100 Accrued payroll payable Increased 2,400 Taxes payable Decreased 900 Additional information applying to the current year ending December 31, 2018: a. Net income for year 2018 was RM112,400. b. Depreciation expense for Year 2018 was RM120,000. c. Furnishings with book value of RM5,400 were sold for RM8,600. d. Equipment with book value of RM2,800 was sold for RM2,000. e. New furnishings were purchased for RM16,800. f. New equipment was purchased for RM24,200. g. A total of RM54,800 was paid to reduce long-term debt. h. Cash dividends of RM122,400 were declared paid. Required: Using the information provided, complete a Statement of Cash Flows, using the indirect method. (32 marks) Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 2018. Cash account balance at December 31, 2017, was RM12,020 and the ending cash balance at December, 2018 is RM31,240. Current Asset Accounts Change Amount (RM) 19,220 Cash Increased Credit card receivables Increased 680 Increased 1,500 Accounts receivable Inventories Increased 1,200 Prepaid expenses Decreased 800 Current Liability Accounts Change Amount (RM) Accounts payable Decreased 2,100 Accrued payroll payable Increased 2,400 Taxes payable Decreased 900 Additional information applying to the current year ending December 31, 2018: a. Net income for year 2018 was RM112,400. b. Depreciation expense for Year 2018 was RM120,000. c. Furnishings with book value of RM5,400 were sold for RM8,600. d. Equipment with book value of RM2,800 was sold for RM2,000. e. New furnishings were purchased for RM16,800. f. New equipment was purchased for RM24,200. g. A total of RM54,800 was paid to reduce long-term debt. h. Cash dividends of RM122,400 were declared paid. Required: Using the information provided, complete a Statement of Cash Flows, using the indirect method. (32 marks)
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Cashflow Statement Indirect Method For the Year Ended December 312018 Cashflow from Operating Acti... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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