Below is the information relating to Chan Trading Company for the year ended 31 December 2021....

 

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Below is the information relating to Chan Trading Company for the year ended 31 December 2021. Chan Trading Company Comparative Statement of Financial Position as at 30 June 1 2 Assets Cash 3 4 Accounts receivable Inventory Plant and equipment Accumulated depreciation Total Assets Liabilities and Equity Accounts payable Income tax payable Interest payable Loan Capital Total Liabilities and Equity Additional information: Sales Less Cost of Goods Sold Gross Profit Chan Trading Company Statement of Profit and Loss for the year ended 30 June 2021 Less Expenses Selling expense Admin expense Interest expense Net profit before tax Income tax expense Net profit after tax $ $ $ 2020 30,000 $ 55,000 120,000 300,000 80,000 425,000 85,000 50,000 10,000 80,000 200,000 425,000 $ 88,000 45,000 8,000 $ $ 2021 35,000 75,000 124,000 400,000 100,000 534,000 90,000 65,000 17,000 110,000 252,000 534.000 925,000 655.000 270,000 141,000 129,000 35,000 94.000 New equipment was purchased for cash during the year. It is included in the value of plant and equipment. During the year equipment costing $55,000 was sold for $25,000 and had a carrying amount of $25,000 at the time of sale. All depreciation expense has been included in the selling expense category. Owner withdrew cash amounted to $42,000 during the year. Required: Prepare a statement of cash flows for Chan Trading Company for the year ended 30 June 2021 using the direct method. Below is the information relating to Chan Trading Company for the year ended 31 December 2021. Chan Trading Company Comparative Statement of Financial Position as at 30 June 1 2 Assets Cash 3 4 Accounts receivable Inventory Plant and equipment Accumulated depreciation Total Assets Liabilities and Equity Accounts payable Income tax payable Interest payable Loan Capital Total Liabilities and Equity Additional information: Sales Less Cost of Goods Sold Gross Profit Chan Trading Company Statement of Profit and Loss for the year ended 30 June 2021 Less Expenses Selling expense Admin expense Interest expense Net profit before tax Income tax expense Net profit after tax $ $ $ 2020 30,000 $ 55,000 120,000 300,000 80,000 425,000 85,000 50,000 10,000 80,000 200,000 425,000 $ 88,000 45,000 8,000 $ $ 2021 35,000 75,000 124,000 400,000 100,000 534,000 90,000 65,000 17,000 110,000 252,000 534.000 925,000 655.000 270,000 141,000 129,000 35,000 94.000 New equipment was purchased for cash during the year. It is included in the value of plant and equipment. During the year equipment costing $55,000 was sold for $25,000 and had a carrying amount of $25,000 at the time of sale. All depreciation expense has been included in the selling expense category. Owner withdrew cash amounted to $42,000 during the year. Required: Prepare a statement of cash flows for Chan Trading Company for the year ended 30 June 2021 using the direct method.

Answer rating: 100% (QA)

ExplanationPlease refer to solution in this step Step 7 Chan Trading Company Statement of Cash F... View the full answer