The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts...
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The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts receivable Inventories Prepaid rent Total current assets Non-current assets Investment Plant and equipment Less: Accumulated depreciation - Plant and equipment Total non-current assets Total assets Current liabilities Accounts payable Rent payable Income taxes payable Short-term note payable Dividend payable Total current liabilities Helen Limited Balance Sheet As at 31 December Non-current liabilities Long-term bank loan payable Total liabilities Stockholders' equity Common stock and additional paid-in capital Less: Treasury stock 2020 2019 $ $ 1,299,000 1,134,000 355,000 256,000 460,000 400,000 30,000 50,000 2,144,000 1,840,000 400,000 300,000 1,320,000 950,000 500,000 400,000 1,220,000 850,000 3,364,000 2,690,000 260,000 136,000 180,000 50,000 40,000 666,000 296,000 126,000 220,000 20,000 30,000 692,000 700,000 600,000 1,366,000 1,292,000 1,100,000 800,000 80,000 50,000 Retained earnings Total equity Total liabilities and equity Sales revenue Cost of goods sold Gross profit Other income: Gain on sales of plant and equipment Expenses: Rent expense Helen Limited Income Statement For Year Ended 31 December 2020 Impairment loss on plant and equipment Depreciation expenses Interest expense Income tax expense Net income Other information is as follows: (1) Cash dividends were declared during the year. (2) Helen Ltd paid $30,000 for long-term bank loan payable 978,000 648,000 1.998,000 1,398,000 3,364,000 2,690,000 $ 2,500,000 1,400,000 1,100,000 500,000 400,000 10,000 400,000 27,000 10,000 753,000 (3) Helen Ltd declared and distributed 10,000 shares of common stock as stock dividends to stockholders in this year. The par value is $1 per share. The market value is $3 per share. The stock dividend was classified as small stock dividend. (4) Helen Ltd sold plant and equipment in this year. The cost of plant and equipment sold was $600,000. The company received shares of the seller's common stock as part of the payment. The amount of common stock received had been recorded in investment account. The remaining balance for the plant and equipment sold had been received in cash. Helen Ltd did not purchase additional investment nor sell investment in this year. (5) Helen Ltd purchased plant and equipment in this year. 10 percent of the cost of plant and equipment purchased was settled by issuing common stock. 90 percent of the cost of plant and equipment purchased was settled by paying cash. Required: (a) Prepare a statement of cash flows using indirect method for the year ended 2020. Show your calcuations. (30 marks) The balance sheet and income statement of Helen Limited are as follows: Current assets Cash Accounts receivable Inventories Prepaid rent Total current assets Non-current assets Investment Plant and equipment Less: Accumulated depreciation - Plant and equipment Total non-current assets Total assets Current liabilities Accounts payable Rent payable Income taxes payable Short-term note payable Dividend payable Total current liabilities Helen Limited Balance Sheet As at 31 December Non-current liabilities Long-term bank loan payable Total liabilities Stockholders' equity Common stock and additional paid-in capital Less: Treasury stock 2020 2019 $ $ 1,299,000 1,134,000 355,000 256,000 460,000 400,000 30,000 50,000 2,144,000 1,840,000 400,000 300,000 1,320,000 950,000 500,000 400,000 1,220,000 850,000 3,364,000 2,690,000 260,000 136,000 180,000 50,000 40,000 666,000 296,000 126,000 220,000 20,000 30,000 692,000 700,000 600,000 1,366,000 1,292,000 1,100,000 800,000 80,000 50,000 Retained earnings Total equity Total liabilities and equity Sales revenue Cost of goods sold Gross profit Other income: Gain on sales of plant and equipment Expenses: Rent expense Helen Limited Income Statement For Year Ended 31 December 2020 Impairment loss on plant and equipment Depreciation expenses Interest expense Income tax expense Net income Other information is as follows: (1) Cash dividends were declared during the year. (2) Helen Ltd paid $30,000 for long-term bank loan payable 978,000 648,000 1.998,000 1,398,000 3,364,000 2,690,000 $ 2,500,000 1,400,000 1,100,000 500,000 400,000 10,000 400,000 27,000 10,000 753,000 (3) Helen Ltd declared and distributed 10,000 shares of common stock as stock dividends to stockholders in this year. The par value is $1 per share. The market value is $3 per share. The stock dividend was classified as small stock dividend. (4) Helen Ltd sold plant and equipment in this year. The cost of plant and equipment sold was $600,000. The company received shares of the seller's common stock as part of the payment. The amount of common stock received had been recorded in investment account. The remaining balance for the plant and equipment sold had been received in cash. Helen Ltd did not purchase additional investment nor sell investment in this year. (5) Helen Ltd purchased plant and equipment in this year. 10 percent of the cost of plant and equipment purchased was settled by issuing common stock. 90 percent of the cost of plant and equipment purchased was settled by paying cash. Required: (a) Prepare a statement of cash flows using indirect method for the year ended 2020. Show your calcuations. (30 marks)
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Answer rating: 100% (QA)
Cash flow statement For the year ended 31 December 2020 Cash flow from operating activities Net inco... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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