The final accounts of Dural Trade Ltd are provided below:


Dural Trade Ltd


Balance Sheet (Statement of financial position) as at:






Bank 71,760 92,400
Accounts receivable 115,200 131,760
Inventory 130,320 152,520
Investments 108,000
Land 122,400
Equipment 396,000 501,200
Accumulated depreciation – equipment (171,360) (204,560)
TOTAL ASSETS 649,920 795,720
Liabilities and Shareholders’ Equity
Accounts payable 73,200 82,680
Operating expenses accrued 6,000 7,320
Dividend payable 14,400 17,280
Share capital (Ordinary shares @ $2 each) 360,000 432,000
Share premium 17,280 31,680
Retained earnings 179,040 224,760


Dural Trade Ltd

Income statement for the year ended 31st December 2018

$ $
Sales 1,432,800
Less: Cost of sales 850,680
Gross profit 582,120
Add: Gain on sale of investments 9,600
Less: Operating expenses
Depreciation expenses 43,200
Other expenses 403,200 446,400
Profit before tax 145,320
Less: Tax expense 34,800
Net profit after tax 110,520



Additional information:

  • Cash purchases of land and equipment were made during the year.
  • An equipment was sold at its net book value for $25,400 for cash.
  • The investments were sold for cash at $117,600.
  • A rights issue at a premium price was made on the basis of 1 share for every 20 held. A bonus share, which was made out of retained earnings, was also given for every rights issue share. Cash has been received for the rights issue. (v) The directors declared a cash dividend during the year.





Prepare a Cash Flow Statement for Dural Trade Ltd for the year ended 31 December 2018 from the above information given (note that you should use the Direct Approach).

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