Financial Accounting I – cash flow statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2010 Spring Q. No. 5
Saint Traders is in the process of preparing its statement of cash flows for the year ended December 31, 2009. An income statement and comparative balance sheets for the company are as follows:
Saint Traders Income statement For the year ended December 31, 2009
Cost of goods sold
|Total operating expenses|
Loss on sale of land
Income before tax
Income tax expense
Saint Traders Comparative Balance Sheets
|Dec. 31, 2009||Dec. 31, 2008|
Total current assets
Total long-term assets
|Total Assets||Rs. 3,09,400||Rs. 2,03,000|
Income tax payable
Total current liabilities
Total stockholder’s equity
|Total liabilities and equity||Rs. 3,09,400||Rs. 2,03,000|
a. Land was acquired during the year for Rs. 70,000.
b. An unimproved parcel of land was sold during the year for Rs. 27,500. Its original cost to Saint Traders was Rs. 30,000.
c. A specialized piece of equipment was acquired in exchange for capital stock in the company. The value of capital stock was Rs. 60,000.
d. In addition to the capital stock issued in exchange for specialized equipment, stock was sold for Rs. 40,000.
e. Dividends of Rs. 600 were paid.
Required: A statement of cash flows for the year ended December 31,
Ending balance not matching.
Note: On the above question there are so many mistakes due to these reasons the answer to this question is not matched.