Prepare Cash flow statement using Indirect Method Balance sheet as on 2020 (in $) 31 December...

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Prepare Cash flow statement using Indirect Method Balance sheet as on 2020 (in $) 31 December 2019 ASSETS Cash 8000 Accounts receivable 15000 Inventory 30000 24000 77000 Net Equipment Total assets Liabilities and equity Accounts payable 21000 Accrued liability 4000 Common shares 35000 Retained earnings 17000 Total liabilities and 77000 equity Sales Cost of goods sold Gross profit Operating expenses- 80000 Depreciation 10000 expense Loss on sale of equipment Net income Income statement Additional Information 5000 2019(in $) 5000 12000 33000 20000 70000 17000 5000 30000 18000 70000 140,000 30,000 1,10,000 95,000 15000 1. Equipment costing 20,000, depreciation 12000 was sold for $3000 2. Purchased equipment costing 22000 by paying 17000 cash and remaining as accounts payable 3. Paid cash dividend of 21000 Prepare Cash flow statement using Indirect Method Balance sheet as on 2020 (in $) 31 December 2019 ASSETS Cash 8000 Accounts receivable 15000 Inventory 30000 24000 77000 Net Equipment Total assets Liabilities and equity Accounts payable 21000 Accrued liability 4000 Common shares 35000 Retained earnings 17000 Total liabilities and 77000 equity Sales Cost of goods sold Gross profit Operating expenses- 80000 Depreciation 10000 expense Loss on sale of equipment Net income Income statement Additional Information 5000 2019(in $) 5000 12000 33000 20000 70000 17000 5000 30000 18000 70000 140,000 30,000 1,10,000 95,000 15000 1. Equipment costing 20,000, depreciation 12000 was sold for $3000 2. Purchased equipment costing 22000 by paying 17000 cash and remaining as accounts payable 3. Paid cash dividend of 21000

Answer rating: 100% (QA)

To prepare a cash flow statement using the indirect method you need to analyze the changes in the balance sheet accounts and consider the income state... View the full answer