Question

The company was established in 1 January 20X5, the owner's capital consisted of only cash contribution 250000$. We bought necessary equipment (computers 15000$ and 2 cars each by 8000$). The company hired employees with monthly salary 15000$ including taxes and social payments.  Prior to payment there was found out some damage, and our company claimed for return of 10000$ inventory. Return was accepted and the supplier offered a 10% discount in case the company paid by cash in 5 days. Our company doesn’t pay within discounted period. Within a week, we make sales 110000$. The customer pays 60000$ by cash. We offered a customer 15% discount if he pays the rest amount within 3 days by cash. We think that the amount of 500$ will not be collected anyway. Depreciation expenses for the end of the month for cars were 2000$, for computers 200$ and for car 500$. Company decided to change 1 of the cars for truck which fair value is 7800$ and changes. At the end of the month company paid immediately for utility expenses 300$, paid 40% of trade payables. 100$ of office supplies were used. Salaries were also paid out. Ending inventory 1000. Income tax accrued 20%.

Prepare Cash flow statement using Indirect method