The Greene Corp. produced the following data accompanying its financial data for 2022; a. Equipment costing 10,000
Fantastic news! We've Found the answer you've been seeking!
Question:
The Greene Corp. produced the following data accompanying its financial data for 2022;
a. Equipment costing 10,000 with a book value of 8,000 was sold for 15,000
b. Motor vehicle costing 40,000 with depreciation of 16,000 was sold at a loss of 5,500
c. The building was revalued during the year.
d. No dividend was paid during the year.
BALANCE SHEET AS AT DECEMBER 31, | |||||||
2021 | 2022 | ||||||
$ | $ | $ | $ | $ | $ | ||
Non-Current Assest | COST | DEPN | NBV | COST | DEPN | NBV | |
Goodwill | 70,000 | 35,000 | |||||
Building | 300,000 | 300,000 | 375,000 | 375,000 | |||
Equipment | 250,000 | 25,000 | 225,000 | 310,000 | 38,500 | 271,500 | |
Motor Vehicle | 150,000 | 15,000 | 135,000 | 180,000 | 27,000 | 153,000 | |
700,000 | 40,000 | 730,000 | 865,000 | 65,500 | 834,500 | ||
Current Liabilities | |||||||
Stock | 22,000 | 35,000 | |||||
Short Term Investment | 40,000 | 25,000 | |||||
Debtors | 8,000 | 15,000 | |||||
Bank | 0 | 22,500 | |||||
Cash | 12,000 | 82,000 | 6,000 | 103,500 | |||
812,000 | 938,000 | ||||||
EQUITY & LIABILITIES | |||||||
Capital & Reserves | |||||||
Share Capital ( $1 Ord Shares) | 275,000 | 275,000 | |||||
Share Premium | 22,500 | 22,500 | |||||
Reval Reserve | 0 | 50,000 | |||||
General Reserves | 25,500 | 25,500 | |||||
Retained Earnings | 140,500 | 463,500 | 80,750 | 453,750 | |||
Non-Current Liabilities | |||||||
10% Debenture | 297,500 | 410,750 | |||||
Current Liabilities | |||||||
Creditors | 17,000 | 22,000 | |||||
Interest | 10,000 | 26,500 | |||||
Tax Payable | 14,000 | 0 | |||||
Accounts Payable | 10,000 | 51,000 | 25,000 | 73,500 | |||
812,000 | 938,000 | ||||||
Required:
(a) Prepare the cash flow statement for the year ended 2022.
- Comment on the performance and financial position of the company, using relevant items in the cash flow statement.
Related Book For
Financial Accounting
ISBN: 978-1119305736
10th edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
Posted Date: