Question

Instructions: Prepare a statement of cash flows forthe year ended December 31, 2017 using the

INDIRECTmethod. Condensed financial data of Sinjh SAfollows.

SINJH SA Comparative Statements of FinancialPosition December 31
Assets		2017		2016
Equipment	€	265,000	€	242,500
Accumulated Depreciation—Equipment		( 47,000)		( 52,000)
Long-term investments		140,000		114,000
Prepaid expenses		29,300		26,000
Inventory		112,500		102,850
Accounts Receivable		92,800		33,000
Cash		100,350		48,400
Total	€	692,950	€	514,750
Equity and Liabilities
Share capital-ordinary		220,000		175,000
Retained earnings		234,450		105,450
Bonds payable		110,000		150,000
Accounts payable		112,000		67,300
Accrued expenses payable		16,500		17,000
Total		692,950		514,750

SINJH SA Income Statement For the Year Ended December 31, 2017
Sales Revenue ……………………….…………………………	€	400,000
Gain on disposal of Plant Assets ……………………….		5,000	€	405,000
Less:
Cost of goods sold……………………………………..		135,460
Operating expense,excluding depreciation .		12,410
Depreciationexpense …………………………………		45,000
Income tax expense……………………………………		27,280
Interest expense…………………………………………		4,730		224,880
Net Income ………………………………………………………			€	180,120

The following transactions occurred during2017:

New equipment costing €80,000 was purchased for cashduring the year.

Old equipment having an original cost of €57,500 andaccumulated depreciation of €50,000 was sold for €12,500cash.

Bonds payable matured and were paid off at face valuefor cash.

A cash dividend of €43,900 was declared and paid duringthe year.

Instructions: Prepare a statement of cash flows for the yearended December 31, 2017 using the INDIRECT method.

.

SINJH SA

Statement of Cash Flows

For the Year Ended December 31, 2017

Cash flows from OperatingActivities:

Net cash provided by Operating Activities:

Cash flows from InvestingActivities:

Net cash provided by Investing Activities:

Cash flows from FinancingActivities:

Net cash provided by Financing Activities:

Net increase/decrease in cash:

Cash at beginning of period:

Cash at end of period: €

Notes or computations: (ifnecessary)

Instructions: Prepare a statement of cash flows forthe year ended December 31, 2017 using the

INDIRECTmethod. Condensed financial data of Sinjh SAfollows.

SINJH SA Comparative Statements of FinancialPosition December 31
Assets		2017		2016
Equipment	€	265,000	€	242,500
Accumulated Depreciation—Equipment		( 47,000)		( 52,000)
Long-term investments		140,000		114,000
Prepaid expenses		29,300		26,000
Inventory		112,500		102,850
Accounts Receivable		92,800		33,000
Cash		100,350		48,400
Total	€	692,950	€	514,750
Equity and Liabilities
Share capital-ordinary		220,000		175,000
Retained earnings		234,450		105,450
Bonds payable		110,000		150,000
Accounts payable		112,000		67,300
Accrued expenses payable		16,500		17,000
Total		692,950		514,750

SINJH SA Income Statement For the Year Ended December 31, 2017
Sales Revenue ……………………….…………………………	€	400,000
Gain on disposal of Plant Assets ……………………….		5,000	€	405,000
Less:
Cost of goods sold……………………………………..		135,460
Operating expense,excluding depreciation .		12,410
Depreciationexpense …………………………………		45,000
Income tax expense……………………………………		27,280
Interest expense…………………………………………		4,730		224,880
Net Income ………………………………………………………			€	180,120

The following transactions occurred during2017:

New equipment costing €80,000 was purchased for cashduring the year.

Old equipment having an original cost of €57,500 andaccumulated depreciation of €50,000 was sold for €12,500cash.

Bonds payable matured and were paid off at face valuefor cash.

A cash dividend of €43,900 was declared and paid duringthe year.

Instructions: Prepare a statement of cash flows for the yearended December 31, 2017 using the INDIRECT method.

.

SINJH SA Statement of Cash Flows For the Year Ended December 31, 2017
Cash flows from OperatingActivities:
Net cash provided by Operating Activities:
Cash flows from InvestingActivities:
Net cash provided by Investing Activities:
Cash flows from FinancingActivities:
Net cash provided by Financing Activities:
Net increase/decrease in cash:
Cash at beginning of period:
Cash at end of period: €
Notes or computations: (ifnecessary)