02,3) statement of financial position Sy Ltd. shows the following balances at De
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Question
02,3) statement of financial position Sy Ltd. shows the following balances at December 31: 3-6A The comparative, unclassified 2018 2017 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings (67,0o0) (100,000 Equipment Acecumulated depreciation equipment (18,000) o,000) $23,000so 25,000 36,000 400 55,000 100,000 110,000 527,000 263,000 85,000 40,000 Total assets $709,000 $394.000 Bank overdraft Accounts payable Income tax payable Interest payable Dividends payable Bank loan payable current portion Bank loan payable-non-current portion 380,000 212,000 Common shares Retained earnings Total liabilities and shareholders equity $700,000 $394.000 -?- $8,000 43.000 26,000 3.000 2,000 6,0007,000 26,000 20,000 t portion 26000L000 198,000 88,000 50,000 30,000 Additional information regarding 2018: O Type here to searchExplanation / Answer
The company would not able to manage its non-cash working capital because the current assets are decreasing and the current liabilities were been increasing during the period.
The company was able to afford to buy new building with the help of issue of new common shares of $110000 and bank loan of $210000 so taken.
Statement of Cash flows: Net Income 57000 Less: gain on sale of land -7000 Less: gain on sale of building -38000 add: dep on building 55000 add: loss on equip sale 4000 add: dep on equip 19000 add: AR decre 11000 add: invent decre 21000 less: BO decre -8000 add: AP increa 17000 add: IT pay incre 1000 less:IP decre -1000 add: divi pay increa 2000 add: BL pay increa 6000 Net inflow of Operating activities 139000 Cash flow of investing activites: sale of land (10000+7000) 17000 sale of building 50000 less: purchase of build -364000 Less: purchase of equip -65000 add: sale of equip 5000 Net cash outflow of investing activities -357000 Cash flow of financing activities: Bank loan taken 210000 Less: bank loan paid -42000 add: isssue of capital 110000 Less: dividend paid out -37000 Net cash inflow of financing activities 241000 Cash inflow of all activities 23000 Opening cash 0 Closing cash 23000Related Questions
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