Scribd
Upload
112 views2 pages

Ia T23 Ans

The document contains three statements of cash flows for different companies: 1. Norman NV's partial statement of cash flows shows $208,500 in net cash from operating activities, calculated using the direct method. 2. Norman NV's partial statement also shows $208,500 in net cash from operating activities, calculated using the indirect method and reconciling net income to cash flows. 3. Murdock's full statement of cash flows shows $5,330 in net cash from operating activities calculated indirectly, -$150,022 from investing activities, and $180,000 from financing activities, resulting in a $32,308 increase in cash over the year.

Uploaded by

ckwai0603
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
112 views2 pages

Ia T23 Ans

The document contains three statements of cash flows for different companies: 1. Norman NV's partial statement of cash flows shows $208,500 in net cash from operating activities, calculated using the direct method. 2. Norman NV's partial statement also shows $208,500 in net cash from operating activities, calculated using the indirect method and reconciling net income to cash flows. 3. Murdock's full statement of cash flows shows $5,330 in net cash from operating activities calculated indirectly, -$150,022 from investing activities, and $180,000 from financing activities, resulting in a $32,308 increase in cash over the year.

Uploaded by

ckwai0603
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 2

E23.

5
Direct method
Norman NV
Partial statement of Cash Flow
For the year ended 31 dec 2022
$
Cash Flow from operationg activiting:
cash receipts from customers (840000+ 22000) 862000
cash paid for operating expenses (624000- 15000) 609000
cash paid for income tax expense (40000+4500) 44500
Net cash provided by operating activing 208500

Indiected method:
Norman NV
Partial statement of Cash Flow
For the year ended 31 dec 2022
$
Cash Flow from operationg activiting:
net income 90000
Adjustment to recomcile net income to net cash provided by operating activiting
depreciation expense 60000
loss on sale of equipment 26000
decrease in Account receivable 22000
increase in Account payable 15000
decrease in income taxes payable -4500
Net cash provided by operating activing 208500

PP
murdock
statement of cash flow
for the year ended 31 dec 2021
$ $
cash flow from operating activities:
net incoem 50000
adjustment to reconcile net income to net cash provided by operating activities
decrease in AR 8250
increase in inventory -20000
decrease in prepaid insurance 500
depreciation expense (38000+(20000-5000)) 53000
decrease in AP -26420
decrease in salary payable -4500
decrease in note payable -50000
gain in disposal on trading sercurities (74000-69500) -4500
gain on disposal of equipment (6000-5000) -1000

net cash provided by operating activities 5330

cash flow from investing activities


sale of trading securities 74000
sale of equipment 6000
purchases new equipment -145000
purchases of 5% bonds -88022
net cash provided by investing activities -153022

cash flow from financing activities


issue of ordinary share 200000
payment of cash dividend -20000
net cash provided by financingactivities 180000
net increase/(decrease) in cash 32308
cash, 1 jan 2021 -22955
cash, 31 dec 2021 9353

You might also like