Mortonson plc has not yet prepared a formal statement of cash flows for the 2019 fiscal year.
Question:
Instructions
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold.
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Mortonson plc STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2019 (IN THOUSANDS) Sales revenue £3,800 Expenses Cost of goods sold £1,200 Salaries and benefits 725 Heat, light, and power 75 Depreciation 80 Property taxes 19 Patent amortization 25 Miscellaneous expenses 10 30 2,164 Interest Income before income taxes 1,636 Income taxes 818 Net income 818 Retained earnings-Jan. 1, 2019 310 1,128 Share dividend declared and issued 600 £ 528 Retained earnings-Dec. 31, 2019 Mortonson plc COMPARATIVE STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31 (IN THOUSANDS) Assets 2019 2018 Equity investments (non-trading) £ 10 £ 50 Land 150 70 Buildings and equipment 910 600 Accumulated depreciation (200) (120) Patents (less amortization) 105 130 Inventory 720 560 Equity investments (non-trading) 10 50 Accounts receivable 780 500 Cash 333 100 Total assets £2,808 £1,890 Equity and Liabilities Share capital-ordinary £1,300 £700 Retained earnings 528 310 Total equity 1,828 1,010 Long-term notes payable-due 2021 200 200 Accounts payable 420 330 Income taxes payable 40 30 Notes payable 320 320 Total liabilities 980 880 Total equity and liabilities £2,808 £1,890
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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