Instructions Prepare a statement of cash flows for the year ended 2019 , using the indirect method.
Question 2
The comparative
ENGRO CORPORATION
Comparative Balance Sheet
Assets 2019 2018
Cash RS36,000 RS 31,000
Prepaid insurance 25,000 17,000
Land 18,000 40,000
Equipment 70,000 60,000
Total Assets RS199,000 RS 195,000
Liabilities and
Accounts payable RS11,000 RS 6,000
Bonds payable 27,000 19,000
Common stock 140,000 115,000
Total liabilities and stockholders' equity RS199,000 RS 195,000
Additional information:
- Net loss for 2019 is RS 20,000.
- Cash dividends of RS 14,000 were declared and paid in 2019.
- Land was sold for cash at a loss of RS 4,000. This was the only land transaction during the year.
- Equipment with a cost of RS 15,000 and accumulated depreciation of RS 10,000 was sold for RS 5,000 cash.
- RS 22,000 of bonds were retired during the year at carrying (book) value.
- Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was RS 25,000.
Instructions
Prepare a statement of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
