Use the following information to prepare a well-organized cash flow statement for Quesnel Ltd. for the year
Question:
Use the following information to prepare a well-organized cash flow statement for Quesnel Ltd. for the year ended December 31, 2017. Use the information to calculate net income for the year. Assume Quesnel uses IFRS. If alternatives for any items exist, state the choices you make.
Cash and cash equivalents at the beginning of the year ......$120,000
Cash and cash equivalents at the end of the year........... 350,000
Decrease in accounts payable ...................28,000
Decrease in prepaids ......................6,900
Depreciation expense ......................300,000
Dividends paid .........................50,600
Increase in accounts receivable.................. 41,400
Increase in inventory .......................75,900
Increase in wages payable................... 10,350
Issuance of common shares ...................184,000
Issuance of long-term debt ...................287,500
Loss on the sale of land ...................32,200
Net income ............................?
New bank loans .....................575,000
Proceeds from the sale of land ..................250,000
Purchase of common shares of a public company........... 115,000
Purchase of new equipment.................. 632,500
Repayment of long-term debt.................. 379,500
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
Quesnel Ltd Cash Flow Statement For the Year Ended December 31 2017 Cash From Operations Net I...View the full answer
