The final accounts of Dural Trade Ltd are provided below:
Dural Trade Ltd
Balance Sheet (Statement of financial position) as at:
|Accumulated depreciation – equipment||(171,360)||(204,560)|
|Liabilities and Shareholders’ Equity|
|Operating expenses accrued||6,000||7,320|
|Share capital (Ordinary shares @ $2 each)||360,000||432,000|
|TOTAL LIABILITIES AND EQUITY||649,920||795,720|
Dural Trade Ltd
Income statement for the year ended 31st December 2018
|Less: Cost of sales||850,680|
|Add: Gain on sale of investments||9,600|
|Less: Operating expenses|
|Profit before tax||145,320|
|Less: Tax expense||34,800|
|Net profit after tax||110,520|
- 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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