A medium entity provided the following data at year-end: Cash 25,000 530,000 Accounts receivable Prepayments Inventories 60,000 60,000 Investment in associate 110,000 Property, plant and equipment Accumulated depreciation Software - net of amortization and impairment Deferred tax asset 3,250,000 700,000 10,000 5,000 Bank overdraft 80,000 Bank loan, payable in two years and prepayable without penalty Trade accounts payable Interest payable Current tax liability Warranty liability Employee benefit obligation, current portion P4,000 Finance lease liability, current portion P20,000 Share capital Retained earnings 50,000 430,000 2,000 270,000 14,000 10,000 44,000 2,000,000 450,000 1. What amount should be reported as total current assets? 2. What amount should be reported as total noncurrent liabilities? 3. What amount should be reported as total shareholders' equity?

A medium entity provided the following data at year-end: Cash 25,000 530,000 Accounts receivable Prepayments Inventories 60,000 60,000 Investment in associate 110,000 Property, plant and equipment Accumulated depreciation Software - net of amortization and impairment Deferred tax asset 3,250,000 700,000 10,000 5,000 Bank overdraft 80,000 Bank loan, payable in two years and prepayable without penalty Trade accounts payable Interest payable Current tax liability Warranty liability Employee benefit obligation, current portion P4,000 Finance lease liability, current portion P20,000 Share capital Retained earnings 50,000 430,000 2,000 270,000 14,000 10,000 44,000 2,000,000 450,000 1. What amount should be reported as total current assets? 2. What amount should be reported as total noncurrent liabilities? 3. What amount should be reported as total shareholders' equity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000, Expenditures on fixed assets and net operating working capital $860,000. Tax rate is 35%. Compute for the free cash flow.
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