Tutorial 8

The income statement and comparative balance sheet of GEO

Corporation is given below:

GEO Corporation

Income Statement for the year ended December 31, 2017

RM

Sales

3.450

Cost of goods sold

2.350

Gross profit

1.100

Selling & Administrative expenses

465

635

Gain on sale of investment

40

Profit before tax

675

Tax expenses

270

Profit after tax

405

GEO Corporation

Statement of Balance Sheet

As at December 31, 2017 and 2016

2017 2016

Assets:

Cash and cash equivalents 900 575

Account receivable

875 650

Inventory

800 950

Plant assets

950 850

Accumulated depreciation (600) (585)

Long-term investments

650 710

Total

3.575 3.150

Liabilities and capital:

Accounts payable

Accrued liabilities

Bond payable

Capital stock

Retained Earnings

Total

600 450

100 125

700 775

950 850

1.225 950

3.575 3.150

During the year 2017, a dividend of RM130 was declared and

paid by management of GEO Corporation. Some plant assets

were purchased during 2017 and the payment was settled by

issuing common stock amounting to RM35.

Required: Using the data given above, prepare statement of

cash flows of GEO Corporation using indirect method.

Tutorial 8 The income statement and comparative balance sheet of GEO Corporation is given below: GEO Corporation Income Statement for the year ended December 31, 2017 RM 3.450 Cost of goods sold 2,150 Grom proti 1.100 Selling & Administrative expenses 465 35 Gaise of invent 40 Pulit before tar Taxes 270 Protetor tax 405 GEO Corporation Statement of Balance Sheet As at December 31, 2017 and 2016 2017 2016 Cash and cash equivalent 575 Account receivable x75 650 Imamy 800 950 950 kso Accumulated depreciation) (585) Long-term investments 650710 3.5753.150 Liabilities and capital Accounts payable Accredible Booyable Capital sock Retained lamin Total 450 100 125 700 775 950 50 25753.150 During the year 2017, a dividend of RM130 was declared and paid by management of GEO Corporation. Some plant assets were purchased during 2017 and the payment was settled by issuing common stock amounting to RM35. Required: Using the data given above, prepare statement of cash flows of GEO Corporation using indirect method