INDIRECT
Suka at Patis Company
Statement of Cash Flows
For the Year Ended December 31, 2020
Net Income 110,000
Adjustments
Amortization of Discount (23,000)
Gain on Sale of Equipment (200,000)
Depreciation Expense 250,000
Loss on impairment of equipment 300,000 327,000
Net Income Before Working Capital Changes 437,000
Changes in Working Capital
Accounts Receivable (15,000)
Allowance for DA (1,000)
Advances to Suppliers (14,500)
Inventory (40,000)
Prepaid Rent 12,500
Rent Receivable (10,000)
Interest Receivable 70,000
Deferred Tax Asset (7,500)
Accounts Payable 50,000
Trade Notes Payable (60,000)
Unearned Rent Income 25,000
Salaries Payable (60,000)
Rent Payable (18,000)
Income Tax Payable 30,000 (38,500)
Cash inflows from operating activities 398,500
Acquisition of Land (150,000)
Purchase of Equipment (1,074,000)
Proceeds from Sale of Equipment 300,000
Cash outflows from investing activities (924,000)
Withdrawals (40,000)
Additional Investments 100,000
Proceeds from Bank Loans 500,000
Cash inflows from financing activities 560,000
Increase in cash and cash equivalents 34,500
Cash and cash equivalents, beginning balance 50,000
Cash and cash equivalents, ending balance 84,500
DIRECT
Suka at Patis Company
Statement of Cash Flows
For the Year Ended December 31, 2020
Collections from customers 2,144,000
Payment to suppliers (944,500)
Income received 165,000
Salaries paid (560,000)
Rent paid (205,500)
Utilities paid (100,000)
Other expenses paid (145,000)
Cash generated from operations 354,000
Interest received 97,000
Income Taxes Paid (52,500)
Cash inflow from operating activities 398,500
Acquisition of Land (150,000)
Purchase of Equipment (1,074,000)
Proceeds from Sale of Equipment 300,000
Cash outflow generated from investing activities (924,000)
Withdrawals (40,000)
Additional Investments 100,000
Proceeds from Bank Loans 500,000
Cash inflows from financing activities 560,000
Increase in cash and cash equivalents 34,500
Cash and cash equivalents, beginning balance 50,000
Cash and cash equivalents, ending balance 84,500
B Cash 100,000.00 Financing
Amoy, Capital 100,000.00
B
Land 50,000.00
Amoy, Capital 50,000.00
C Land 150,000.00 Investing
Cash 150,000.00
D Amoy, Capital 40,000.00 Financing
Cash 40,000.00
D Amoy, Capital 20,000.00
Inventory 20,000.00
E Equipment 1,074,000.00 Investing
Cash 1,074,000.00
F Cash 73,000.00 Investing
Investment in bonds 23,000.00
Interest Income 50,000.00
G Cash 500,000.00 Financing
Bank Loan Payable 500,000.00
ASSE
Allowance
Cash & Cash Accounts Advances to
for Doubtful Inventory
Equivalents Receivable Suppliers
Accounts
50,000.00
398,500.00 15,000.00 1,000.00 14,500.00 40,000.00
B Financing 100,000.00
B
C Investing - 150,000.00
D Financing - 40,000.00
D - 20,000.00
E Investing - 1,074,000.00
G Financing 500,000.00
Investing 300,000.00
84,500.00 15,000.00 1,000.00 14,500.00 20,000.00
ASSETS
Prepaid Rent Interest Accumulated Investment in
Land PPE
Rent Receivable Receivable Depreciation Bonds
- 12,500.00 10,000.00 - 70,000.00 23,000.00
50,000.00
150,000.00
1,074,000.00
- 250,000.00
- 624,000.00 524,000.00
- 300,000.00
- 12,500.00 10,000.00 - 70,000.00 200,000.00 450,000.00 - 26,000.00 23,000.00
LIABILITIES & EQUITY
Trade Unearned
Deferred Accounts Salaries Rent Income Tax
Notes Rent Bank Loans
Tax Asset Payable Payable Payable Payable
Payable Income
7,500.00 50,000.00 - 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00
500,000.00
7,500.00 50,000.00 - 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00 500,000.00
717,000.00 717,000.00
May Amoy, Revenue
Capital (Expenses)
50,000.00
460,000.00 Net Income Before Working Capital Changes
100,000.00
50,000.00
- 40,000.00
- 20,000.00
- 250,000.00 Depreciation Expense
200,000.00 Gain on sale of equipment
- 300,000.00 Loss on impairment of equipment
110,000.00 Net Income
110,000.00 - 110,000.00 Closing Entry
250,000.00
ASSETS
Allowance
Cash & Cash Accounts Advances to Prepaid
for Doubtful Inventory
Equivalents Receivable Suppliers Rent
Accounts
50,000.00
2,144,000.00 15,000.00 41,000.00
- 944,500.00 14,500.00 40,000.00
165,000.00
- 560,000.00
- 205,500.00 - 12,500.00
- 100,000.00
- 40,000.00
- 145,000.00
- 45,000.00
70,000.00
- 7,500.00
B Financing 100,000.00
B
C Investing - 150,000.00
D Financing - 40,000.00
D - 20,000.00
E Investing - 1,074,000.00
F Investing 27,000.00
G Financing 500,000.00
Investing 300,000.00
84,500.00 15,000.00 1,000.00 14,500.00 20,000.00 - 12,500.00
ASSETS
Rent Interest Accumulated Investment in Deferred Accounts
Land PPE
Receivable Receivable Depreciation Bonds Tax Asset Payable
50,000.00
10,000.00
- 70,000.00
7,500.00
50,000.00
150,000.00
1,074,000.00
23,000.00
- 250,000.00
- 624,000.00 524,000.00
- 300,000.00
10,000.00 - 70,000.00 200,000.00 450,000.00 - 26,000.00 23,000.00 7,500.00 50,000.00
717,000.00 717,000.00
LIABILITIES & EQUITY
Trade Unearned
Salaries Rent Income Tax May Amoy, Revenue
Notes Rent Bank Loans
Payable Payable Payable Capital (Expenses)
Payable Income
50,000.00
2,200,000.00
- 60,000.00 - 880,000.00
25,000.00 150,000.00
- 60,000.00 - 500,000.00
- 18,000.00 - 200,000.00
- 100,000.00
- 40,000.00
- 145,000.00
30,000.00 - 75,000.00
100,000.00
50,000.00
- 40,000.00
- 20,000.00
50,000.00
500,000.00
- 250,000.00
200,000.00
- 300,000.00
110,000.00
110,000.00 - 110,000.00
- 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00 500,000.00 250,000.00
Sales
COGS
Rent Income
Salaries Expense
Rent Expense
Utilities Expense
Doubtful Accounts
Other Expenses
Income Tax
Interest Income on Bonds Investment
Depreciation Expense
Gain on sale of equipment
Loss on impairment of equipment
Net Income
Closing Entry
INDIRECT
Tick Tack Company
Statement of Cash Flows
For the Year Ended December 31, 2020
Net Income 2,467
Adjustments
Unrealized gain (7)
Loss on Sale of Equipment 21
Depreciation Expense 28
Salaries - Share Options 28
Amortization of Discount 7
Amortization of Premium 21 98
Net Income Before Working Capital Changes 2,565
Changes in Working Capital
Accounts Receivable (2,509)
Allowance for Doubtful Accounts 6
Inventory (140)
Prepaid Expenses (14)
Deferred Tax Asset (11)
Accounts Payable 840
Notes Payable (100)
Accrued Expenses 42
Interest Payable (112)
Income Tax Payable 70 (1,928)
Cash inflow from operating activities 637
Payment for Repair of Equipment (84)
Acquisition of Equipment (210)
Proceeds from Sale of Equipment 42
Cash outflow from investing activities (252)
Payment of Bonds Payable (280)
Payments of Cash Dividends (112)
Proceeds from Exercising Share Options 170
Cash outflow from financing activities (222)
Increase in cash and cash equivalents 163
Cash and cash equivalents, beginning balance 420
Cash and cash equivalents, ending balance 583
DIRECT
Tick Tack Company
Statement of Cash Flows
For the Year Ended December 31, 2020
Collections from customers 10,080
Payments to suppliers (7,660)
Accrued Expenses Paid (700)
Cash generated from operations 1,720
Interest paid (168)
Interest received 91
Income taxes paid (1,006)
Cash inflow from operating activities 637
Payment for Repair of Equipment (84)
Acquisition of Equipment (210)
Proceeds from Sale of Equipment 42
Cash outflow from investing activities (252)
Payment of Bonds Payable (280)
Payments of Cash Dividends (112)
Proceeds from Exercising Share Options 170
Cash outflow from financing activities (222)
Increase in cash and cash equivalents 163
Cash and cash equivalents, beginning balance 420
Cash and cash equivalents, ending balance 583
Accounts Allowance for
Cash
Receivable doubtful accounts
Beginning Balances 420 170 (10)
637 2,520 (17)
Increase (Decrease) in WC
(11) 11
Cash Dividends Paid Financing (112)
Payment of Notes Payable Operating
Payments of Bonds Payable Financing (280)
C Investing (84)
F Financing 170
D Investing (210)
E
B Investing 42
Ending Balances 583 2,679 (16)
Operating Operating
583 2,679 (16)
ASSETS
Trading Prepaid Accumulated Deffered Investment
Inventory Equipment Land
securities Expenses Depreciation tax asset in bonds
210 110 110 700 (10) 30 1,190 1,120
140 14 11 (21)
84
280
700
7
(70) 7
(28)
217 250 124 994 (31) 41 1,169 1,820
Operating Operating Operating Investing Investing Operating Investing Investing
217 250 124 994 (31) 41 1,169 1,820
7,830
LIABILITIES & EQUITY
Accounts Dividends Accrued Notes Interest Income Tax Bonds
Payable Payable Expenses Payable Payable Payable Payable
70 10 30 280 130 10 1,400
840 42 (100) (112) 70
28
(280)
70
910 38 72 250 18 80 1,120
Operating Financing Operating Financing Operating Operating Financing
910 38 72 250 18 80 1,120
7,830
ITIES & EQUITY
Discount on Ordinary Share Share options Retained Revenue Nominal
bonds payable Share Premium outstanding Earnings (Expenses) Accounts
(40) 700 350 210 890
2,544 Net Income Before Working C
(140)
7 (7) Interest Expense
140 100 (70)
28 (28) Salaries - Share Options
560 140
7 Unrealized Gain
(21) Loss on sale of equipment
(28) Depreciation Expense
2,467 Net Income
2,467 (2,467)
(33) 1,400 590 168 3,217
Financing Financing Financing Financing Financing
(33) 1,400 590 168 3,217
et Income Before Working Capital Changes
terest Expense
laries - Share Options
nrealized Gain
ss on sale of equipment
epreciation Expense
Cash Accounts Allowance for
Receivable doubtful accounts
Beginning Balances 420 170 (10)
10,080 2,520
(7,660)
(17)
(700)
(168)
(995)
(11)
G (11) 11
Cash Dividends Paid Financing (112)
Payments of Bonds Payable Financing (280)
C Investing (84)
F Financing 170
D Investing (210)
E
A Investing 91
B Investing 42
Ending Balances 583 2,679 (16)
Operating Operating
583 2,679 (16)
ASSETS
Trading Inventory Prepaid Equipment Accumulated Deffered Investment in Land
securities Expenses Depreciation tax asset bonds
210 110 110 700 (10) 30 1,190 1,120
140
7
14
11
84
280
700
(21)
(70) 7
(28)
217 250 124 994 (31) 41 1,169 1,820
Operating Operating Operating Investing Investing Operating Investing Investing
217 250 124 994 (31) 41 1,169 1,820
7,830
LIABILITIES & EQUITY
Accounts Dividends Accrued Notes Interest Income Tax Bonds Discount on
Payable Payable Expenses Payable Payable Payable Payable bonds payable
70 10 30 280 130 10 1,400 (40)
840 (100)
42
(112) 7
70
28
(280)
70
910 38 72 250 18 80 1,120 (33)
Operating Financing Operating Financing Operating Operating Financing Financing
910 38 72 250 18 80 1,120 (33)
7,830
Ordinary Share Share options Retained Revenue Nominal
Share Premium outstanding Earnings (Expenses) Accounts
700 350 210 890
12,600 Sales
(8,260) Cost of Sales
7 Unrealized gain on change in fair value
(17) Bad Debts Expense
(728) Other Expenses
(63) Interest Expense
(1,065) Income Tax Expense
(140)
140 100 (70)
28 (28) Salaries - Share Options
560 140
70 Interest Income in Bonds Investments
(21) Loss on sale of equipment
(28) Depreciation Expense
2,467 Net Income
2,467 (2,467)
1,400 590 168 3,217
Financing Financing Financing Financing
1,400 590 168 3,217
ge in fair value
s Investments
