The balance sheet at 31 December 2020 for GBP Investments Limited is presented below. GBP Investments...

 

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The balance sheet at 31 December 2020 for GBP Investments Limited is presented below. GBP Investments Limited Balance Sheet Cash Accounts receivable Investments Plant assets (net) Land 31 December 2020 $ 55,250 $ 60,850 $ 90,000 $142,500 $ 90,000 $438,600 Accounts payable Note payable (long-term) Common stock Retained earnings $ 75,200 $ 66,000 $250,000 $ 47,400 $438,600 During 2021, the following occurred: 1. Net income for 2021 was $51,500, including $10,650 in depreciation expense 2. Land was purchased through the issuance of $250,000 in additional note payable 3. GBP Investments Limited liquidate its available-for-sale investment at a gain of $25,000 4. An additional $18,250 in common stock was issued at par 5. An equipment was purchased for $78,000 cash 6. Dividend totaling $45,250 was declared and paid to stockholders 7. At 31 December 2021, Cash was $91,000, Accounts Receivable was $84,000, and Accounts Payable was $86,950 Instruction Prepare a statement of cash flows for the year 2021 for GBP Investments Limited. The balance sheet at 31 December 2020 for GBP Investments Limited is presented below. GBP Investments Limited Balance Sheet Cash Accounts receivable Investments Plant assets (net) Land 31 December 2020 $ 55,250 $ 60,850 $ 90,000 $142,500 $ 90,000 $438,600 Accounts payable Note payable (long-term) Common stock Retained earnings $ 75,200 $ 66,000 $250,000 $ 47,400 $438,600 During 2021, the following occurred: 1. Net income for 2021 was $51,500, including $10,650 in depreciation expense 2. Land was purchased through the issuance of $250,000 in additional note payable 3. GBP Investments Limited liquidate its available-for-sale investment at a gain of $25,000 4. An additional $18,250 in common stock was issued at par 5. An equipment was purchased for $78,000 cash 6. Dividend totaling $45,250 was declared and paid to stockholders 7. At 31 December 2021, Cash was $91,000, Accounts Receivable was $84,000, and Accounts Payable was $86,950 Instruction Prepare a statement of cash flows for the year 2021 for GBP Investments Limited.

Answer rating: 100% (QA)

Step 11 Statement of cash flows for the year 2021 for GBP Investments limited is as follows GBP Inve... View the full answer