Question

min u sed) by operations wys be the same or the indirect method? Explain and Ltd. is a private company reporting under ASPE. Its Income statement cet Sable Island Ltd. is a pri condensed information: t e P . SABLE ISLAND LTD. Income Statement Year Ended December 31, 2017 od $900.000 5642,000 50,000 (23,000) 669.000 231.900 Fees earned Operating expenses Depreciation expense Gain on sale of equipment Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit 5.000 226,000 56,500 $169,500

Answer 1

Sable Island Ltd.
Cashflow Statement
Cash flows from Operating Activities
Cash collections from customers		911,750
Cash payments
Cash paid for operating expenses	639,500
Cash paid for Interest	4,550
Cash paid for Income taxes	61,750
Total Cash Payments		705,800
Net Cash Provided/(Used) by Operating Activities		205,950

Sable Island Ltd.
Workings
Cash flows from from Operating Activities
Fees Earned		900,000
Opening Accounts Receivable		56,000
Closing Accounts Receivable		(48,000)
Closing Unearned Revenue		13,750
Opening Unearned Revenue		(10,000)
Cash collections from customers			911,750
Cash payments
Operating expenses	642,000
Opening Accounts Payable	36,000
Closing Accounts Payable	(41,000)
Closing Prepaid expenses	14,000
Opening Prepaid expenses	(11,500)
Cash paid for operating expenses		639,500
Interest expense	5,000
Opening Interest Payable	550
Closing Interest Payable	(1,000)
Cash paid for Interest		4,550
Income tax expense	56,500
Opening Income tax Payable	9,250
Closing Income tax Payable	(4,000)
Cash paid for Income taxes		61,750
Total Cash Payments			705,800
Net Cash Provided/(Used) by Operating Activities			205,950