CW Ltd. had the following balance sheets at 31 December 2006 and 2007. ASSETS Patents Land...

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CW Ltd. had the following balance sheets at 31 December 2006 and 2007. ASSETS Patents Land Machinery and equipment Accumulated depreciation, machinery and equipment Buildings Accumulated depreciation, buildings Prepaid expenses Stock Bills receivable Debtors Investments Bank LIABILITIES Creditors Salaries payable Bond Ordinary R10 shares Preference shares, R100 par value Ordinary share premium Retained earnings 1. 2. 3. 4. TI 5. 6. 2006 112 000 52 200 62 840 R806 754 R30 000 R26 000 45 154 27 000 170 000 310 000 120 000 30 000 104 600 R806 754 2007 R Additional information in respect of 2007: The net income for the year, after tax of R61 074, amounted to R114 648. Dividends paid for the year, R63 024. 112 000 60 000 174 000 (64 000) 440 000 (90 000) 5714 70 352 20 000 175 110 78 400 79 122 R1 060 698 64 474 30 000 230 000 430 000 120 000 30 000 156 224 R1 060 698 Depreciation written off for year: Buildings Machinery and equipment A building costing R30 000, fully depreciated, was abandoned. Amortisation in respect of patents amounted to R12 000 for the year. An additional bond was acquired during the year. R180 000. 7. A bond of R120 000 was redeemed during the year, issuing 12 000 ordinary shares in exchange. Required Prepare a cash flow statement for the year. CW Ltd. had the following balance sheets at 31 December 2006 and 2007. ASSETS Patents Land Machinery and equipment Accumulated depreciation, machinery and equipment Buildings Accumulated depreciation, buildings Prepaid expenses Stock Bills receivable Debtors Investments Bank LIABILITIES Creditors Salaries payable Bond Ordinary R10 shares Preference shares, R100 par value Ordinary share premium Retained earnings 1. 2. 3. 4. TI 5. 6. 2006 112 000 52 200 62 840 R806 754 R30 000 R26 000 45 154 27 000 170 000 310 000 120 000 30 000 104 600 R806 754 2007 R Additional information in respect of 2007: The net income for the year, after tax of R61 074, amounted to R114 648. Dividends paid for the year, R63 024. 112 000 60 000 174 000 (64 000) 440 000 (90 000) 5714 70 352 20 000 175 110 78 400 79 122 R1 060 698 64 474 30 000 230 000 430 000 120 000 30 000 156 224 R1 060 698 Depreciation written off for year: Buildings Machinery and equipment A building costing R30 000, fully depreciated, was abandoned. Amortisation in respect of patents amounted to R12 000 for the year. An additional bond was acquired during the year. R180 000. 7. A bond of R120 000 was redeemed during the year, issuing 12 000 ordinary shares in exchange. Required Prepare a cash flow statement for the year.

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Statement of Cash Flow A Statement of Cash Flow is a statement that includes the inflow and outflow ... View the full answer