Instructions: Prepare astatement of cash flows for the year ended December 31, 2017, usingthe indirect method. The
comparativestatements of financial position for Amaral Reis Company SA as ofDecember 31 are
presented below:
AMARAL REIS COMPANY SA
Comparative Statements of FinancialPosition
December 31
Assets
2017
2016
Land
R
145,000
R
130,000
Equipment
228,000
155,000
Accumulated DepreciationâEquipment
-45,000
-35,000
Buildings
200,000
200,000
Accumulated DepreciationâBuildings
-60,000
-40,000
Prepaid expenses
18,280
21,000
Inventory
154,550
142,000
Accounts Receivable
46,000
62,000
Cash
62,520
45,000
Total
R
749,350
R
680,000
Equity and Liabilities
Share capital-ordinary, 1 par
R
195,000
R
160,000
Retained earnings
208,000
180,000
Bonds payable
300,000
300,000
Accounts Payable
46,350
40,000
Total
R
749,350
R
680,000
The following transactions occurred during2017:
Operating expenses include depreciation expense ofR$45,500.
Land was sold for cash at book value ofR$20,000.
Cash dividends of R$20,000 were paid.
Net income for 2017 was R$54,000.
Equipment was purchased for R$95,000 cash. In addition,equipment costing R$22,000 with a book value of R$12,000 was soldfor R$6,000 cash.
Issued 35,000 shares of R$1 par value ordinary shares inexchange for land with a fair value of R$35,000.
Instructions: Prepare a statement of cash flows for the yearended December 31, 2017, using the indirect method.
AMARAL REIS COMPANY 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:
Note: (if necessary)
Instructions: Prepare astatement of cash flows for the year ended December 31, 2017, usingthe indirect method. The
comparativestatements of financial position for Amaral Reis Company SA as ofDecember 31 are
presented below:
AMARAL REIS COMPANY SA Comparative Statements of FinancialPosition December 31 | ||||
Assets | 2017 | 2016 | ||
Land | R | 145,000 | R | 130,000 |
Equipment | 228,000 | 155,000 | ||
Accumulated DepreciationâEquipment | -45,000 | -35,000 | ||
Buildings | 200,000 | 200,000 | ||
Accumulated DepreciationâBuildings | -60,000 | -40,000 | ||
Prepaid expenses | 18,280 | 21,000 | ||
Inventory | 154,550 | 142,000 | ||
Accounts Receivable | 46,000 | 62,000 | ||
Cash | 62,520 | 45,000 | ||
Total | R | 749,350 | R | 680,000 |
Equity and Liabilities | ||||
Share capital-ordinary, 1 par | R | 195,000 | R | 160,000 |
Retained earnings | 208,000 | 180,000 | ||
Bonds payable | 300,000 | 300,000 | ||
Accounts Payable | 46,350 | 40,000 | ||
Total | R | 749,350 | R | 680,000 |
The following transactions occurred during2017:
Operating expenses include depreciation expense ofR$45,500.
Land was sold for cash at book value ofR$20,000.
Cash dividends of R$20,000 were paid.
Net income for 2017 was R$54,000.
Equipment was purchased for R$95,000 cash. In addition,equipment costing R$22,000 with a book value of R$12,000 was soldfor R$6,000 cash.
Issued 35,000 shares of R$1 par value ordinary shares inexchange for land with a fair value of R$35,000.
Instructions: Prepare a statement of cash flows for the yearended December 31, 2017, using the indirect method.
AMARAL REIS COMPANY 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: | ||
Note: (if necessary) |