These are the financial statements of Metro Meats Ltd. METRO MEATS LTD Statement of financial position as
Question:
These are the financial statements of Metro Meats Ltd.
METRO MEATS LTD | ||
2018 | 2017 | |
ASSETS | ||
Cash | $129 000) | $115 000) |
Accounts receivable | 28 000) | 14 000) |
Inventory | 25 000) | 35 000) |
Property, plant and equipment | 60 000) | 78 000) |
Accumulated depreciation | (20 000) | (24 000) |
Total assets | $122 000) | $118 000) |
LIABILITIES AND EQUITY | ||
Accounts payable | $126 000) | $125 000) |
Dividends payable | 3 000) | |
Income tax payable | 5 000) | 8 000) |
Debentures payable | 27 000) | 33 000) |
Share capital | 18 000) | 14 000) |
Retained earnings | 43 000) | 38 000) |
Total liabilities and equity | $122 000) | $118 000) |
METRO MEATS LTD | |
Sales | $250 000) |
Cost of sales | 210 000) |
Gross profit | 40 000) |
Selling expenses | 18 000) |
Administrative expenses | 6 000) |
Interest expense | 2 000) |
Profit before income tax | 14 000) |
Income tax expense | 4 000) |
Profit | $10 000) |
The following additional data were provided:
- The entity paid an interim dividend of $2000 and declared a final dividend.
- During the year equipment was sold for $8500 cash. This equipment cost $18 000 originally and had a carrying amount of $8500 at the time of sale.
- All depreciation expense is in the selling expense category.
- All operating expenses except for depreciation were paid in cash.
Required
- Prepare a statement of cash flows using the direct method.
- Reconcile profit to cash provided by operating activities.
Statistics for Management and Economics Abbreviated
ISBN: 978-1285869643
10th Edition
Authors: Gerald Keller