Question

prepare a Statement of Cashflow in the Indirect method, by using the balance sheet and addition information.

Bradley Co. Balance Sheet For the years ended December 31, 2019 and 2018 12/31/2019 12/31/2018 $ S 1,200 4,000 10,890 520 670 230 17,510 1,900 5,100 13,900 500 600 200 22,200 $ S 13,600 12,000 $ Assets Current Assets: Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Supplies Total Current Assets Property, plant, & Equipment 5 Land 5 Buildings 7 Equipment 8 Less: Accumulated Depreciation 9 Total Property, Plant, & Equipement 0 Patents (net) -1 Total Assets 2 3 Liabilities 24 Current Liabilities: 25 Accounts Payable 26 Income Taxes Payable 27 Miscellaneous Payables 28 Total Current Liabilities $ 2203,000 18,100 $ 121,100 (32,520) 60,000 20,000 $ 80,000 (29,000) 88,580 $ 102,180 $ 5,500 $ 125,190 $ $ $ 51,000 63,000 7,100 92,300 5,100 4,290 1,400 10,790 5,500 4,100 1,200 10,800 $ S

Answer 1

46 47 Bradley Co. Cash flow Statement For the Year ended 2019 48 (Indirect method) 49 50 Details $ Amount $ 51 52 10,000.00 53 54 55 56 57 58 59 Particulars Cash flows from operating Activities Net Income (25200+5000-23800+3600) Add Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Amortization of Bond Amortization of Patent Loss on Sale of Land Gain on Sale of Equipment Gain on Sale of Patent Decrease in Accounts receivable Decrease in Inventory Increase in Prepaid Insurance Increase in Prepaid Rent Increase in Supplies Decrease in Accounts Payable Increase in Income Tax Payble Incresae in Miscellaneous Pavable 60 61 5,100.00 100.00 600.00 400.00 (180.00) -1,100.00 1,100.00 3,010.00 (20.00) (70.00) (30.00) (400.00) 190.00 200.00 62 63 64 65 66 67 68 8.900.00

68 200.00 8,900.00 18,900.00 69 70 71 72 Incresae in Miscellaneous Payable Net Cash used by Operating Activities Cash Flows from Investing Activities Sale of Land Sale of Equipment Proceeds from sale of Patent Purchase of Equipment Purchase of Building Net cash used by Investing Activities 2,800.00 500.00 2,100.00 73 74 75 (23,000.00) 76 (17,600.00) 77 78 79 80 1,500.00 1,500.00 (5,000.00) 81 82 83 84 Cash Flows from Financing Activities Issue of Common Shares Additional paid in Capital Payment of Dividend Net cash provided by Financing Activities Net Increase in Cash & its equivalents Add Opening Balance of Cash Closing Balance of Cash Non Cash Investing and Financing activities Purchase of land by issuing Preference shares purchase of building by taking Mortgage (2,000.00) (700.00) 1,900.00 1,200.00 85 86 87 4800 88 20000 99