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    Statement of Cash Flow - Solution

    Uploaded by

    Hân Nabi
    The document provides the comparative balance sheet and additional financial information for Happy Resort Company for the year ended June 30, 2020. It then instructs to prepare a statement of cash flows for the same period. The statement of cash flows shows that the company had a net cash increase from operating activities of $77,000, net cash used in investing activities of $92,000, and net cash provided by financing activities of $35,000, resulting in an overall net increase in cash of $20,000 during the period.

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    Statement of Cash Flow - Solution

    Uploaded by

    Hân Nabi
    32 views8 pages
    The document provides the comparative balance sheet and additional financial information for Happy Resort Company for the year ended June 30, 2020. It then instructs to prepare a statement of cash flows for the same period. The statement of cash flows shows that the company had a net cash increase from operating activities of $77,000, net cash used in investing activities of $92,000, and net cash provided by financing activities of $35,000, resulting in an overall net increase in cash of $20,000 during the period.

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    Statement of Cash flow - Solution

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    Statement of Cash flow - Solution

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    The document provides the comparative balance sheet and additional financial information for Happy Resort Company for the year ended June 30, 2020. It then instructs to prepare a statement of cash flows for the same period. The statement of cash flows shows that the company had a net cash increase from operating activities of $77,000, net cash used in investing activities of $92,000, and net cash provided by financing activities of $35,000, resulting in an overall net increase in cash of $20,000 during the period.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    32 views8 pages

    Statement of Cash Flow - Solution

    Uploaded by

    Hân Nabi
    The document provides the comparative balance sheet and additional financial information for Happy Resort Company for the year ended June 30, 2020. It then instructs to prepare a statement of cash flows for the same period. The statement of cash flows shows that the company had a net cash increase from operating activities of $77,000, net cash used in investing activities of $92,000, and net cash provided by financing activities of $35,000, resulting in an overall net increase in cash of $20,000 during the period.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    1. Happy Resort Company prepares financial statements annually.

    The following information

    HAPPY RESORT COMPANY


    Comparative Balance Sheet
    As at 30th June 2020

    2020 2019 In/Decrease

    ASSETS

    Cash $55,000 $35,000 In 20,000


    Accounts Receivable 85,000 53,000 In 32,000
    Inventories 120,000 132,000 De 12,000
    Prepaid expenses 15,000 25,000 De 10,000
    Long-term investment 85,000 75,000 In 10,000
    Equipment 315,000 250,000 In 65,000
    Accumulated Depreciation -65,000 -60,000 In 5,000
    – Equipment
    TOTAL ASSETS 610,000 510,000
    LIABILIITES & EQUITY

    Account payable 85,000 75,000 In 10,000


    Income taxes payable 29,000 24,000 In 5,000
    Bonds payable 130,000 160,000 De 30,000
    Common stock 245,000 170,000 In 75,000
    Retained earnings 121,000 81,000 In 40,000
    TOTAL LIABILITIES 610,000 510,000
    AND EQUITY

    Additional information:
    1. Bonds of $30,000 were converted into common stock.
    2. Dividend $10,000 was paid in cash.
    3. New equipment costing $90,000 was purchased for cash during the year.
    4. Old equipment costing $25,000 was sold for $8,000 cash when book value was $13,000.
    Instruction:
    Prepare Statement of Cash flow for the year ended 30th Jun 2020.
    Note: Show your calculations.
    u
    s annually. The following information for the year ended 30th June 2020 as follow:

    HAPPY RESORT COMPANY


    Comparative Balance Sheet
    For the year ended June 30th,2020

    Cash flows from operating activities

    Net income

    Adjustments to reconcile net income to net cash provided by operating activi


    Depreciation expense
    Loss on disposal of plant assets
    Increase in accounts receivable
    Decrease in inventory
    Decrease in prepaid expenses

    Increase in Account Payable

    Increase in Taxes Payable


    Net cash provided by operating activities

    Cash flows from investing activities


    Purchase of equipmemt
    Disposal of equipmemt

    Increase in Long term Investment


    Net cash used by investing activities

    Cash flows from Financing activities


    Issuance of common stock
    Payment of cash dividends
    Net cash provided by Finacing activities
    Net increase in cash
    Cash at beginning of period
    during the year. Cash at end of period
    h when book value was $13,000. Note 1
    Non-cash investing and financing activities
    Bonds were converted into common stock

    * Ending Balance of RE = Beginning Balance of RE + Net Income - Dividends


    >> Net Income = 121,000 - 81,000 + 10,000 = 50,000
    * Accumulated Depreciation
    60,000
    12,000 Y

    65,000
    as follow:

    COMPANY
    ance Sheet
    June 30th,2020

    $ 50,000

    ash provided by operating activities


    $ 17,000
    5,000
    (32,000)
    12,000
    10,000

    10,000
    5,000 27,000

    77,000

    (90,000)

    8,000
    (10,000)
    (92,000)

    45,000
    (10,000)
    35,000
    20,000
    35,000
    $ 55,000

    $30,000

    Net Income - Dividends


    Equipment 25000
    Accumulated -12000
    Book Value 13000

    >> Y = 17,000
    Rajesh Ltd.
    Statement of Cash Flow
    For the year ended December 31,2020
    Cash flows from operating activities
    Net income
    Adjustments to reconcile net income to net cash provided by operating activities
    Depreciation expense $ 13,300
    Loss on disposal of plant assets -
    Increase/Decrease in accounts receivable (19,000)
    Increase/Decrease in inventory (10,000)
    Increase/Decrease in Tax Payable (1,000)
    Increase/Decrease in Accounts Payable 14,000
    Net cash provided by operating activities
    Cash flows from investing activities
    Disposal of equipmemt 9,700
    Net cash provided by investing activities
    Cash flows from Financing activities
    Issuance of Ordinary Shares 4000
    Payment of Bonds (6,000)
    Payment of cash dividends (20,000)
    Net cash provided by Finacing activities
    Net increase in cash
    Cash at beginning of period
    Cash at end of period
    $ 32,000

    (2,700)
    29,300

    9,700

    (22,000)
    17,000
    20,000
    $ 37,000

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