Comparative balance sheets as at 31 December 2016 and 2017 for Chartowers Ltd are shown below.

Chartowers LtdBalance sheet as at 31 December

2017

2016

Assets

Cash

$4 835

$3 554

Accounts receivable

11 372

8 529

Inventory

22 034

15 637

Prepaid expenses

1 421

2 132

Property, plant and equipment

63 972

49 755

Less: Accumulated depreciation

(18 480)

(14 215)

Total assets

$ 85 154

$ 65 392

Liabilities and equity

Accounts payable

7 108

10 490

Debentures

12 794

Paid-up capital (ordinary shares, par value $1)

35 000

35 000

Retained earnings

30 252

19 902

Total liabilities and equity

$ 85 154

$ 65 392

Sales for 2017 were $180 000, and profit after tax was $16 350. Cost of sales was $136 456. Dividends of $6000 were declared and paid during the year. Interest earned and received was $2340, and interest incurred and paid was $1654. Tax expense for the period was $3000 and this was paid in the period. Other expenses (including depreciation) were $24 880. Property, plant and equipment were purchased for cash.

Required

Prepare a statement of cash flows for Chartowers Ltd for 2017. (Birt, 20180801, pp. 314-315)

Birt, J., Chalmers, K., Maloney, S., Brooks, A., Oliver, J.(20180801). Accounting: Business Reporting for Decision Making (Interactive),6th Edition [VitalSource Bookshelf version].Retrieved from vbk://9780730362951

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