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Cash Flow Statement Assignment 2

1. Parrot Ltd had a net change in cash and cash equivalents of Tk. 21,932 based on the information provided in the cash accounts for 2016 and 2017. 2. Sullivan Corp. prepared a statement of cash flows for the year ended December 31, 2015 using the indirect method. Key line items included cash from operating activities of $370,000, cash used for investing activities of $190,000, and cash used for financing activities of $20,000. 3. Students were required to complete the calculation questions and submit their responses by March 7, 2022. Late submissions would not be accepted.

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82 views2 pages

Cash Flow Statement Assignment 2

1. Parrot Ltd had a net change in cash and cash equivalents of Tk. 21,932 based on the information provided in the cash accounts for 2016 and 2017. 2. Sullivan Corp. prepared a statement of cash flows for the year ended December 31, 2015 using the indirect method. Key line items included cash from operating activities of $370,000, cash used for investing activities of $190,000, and cash used for financing activities of $20,000. 3. Students were required to complete the calculation questions and submit their responses by March 7, 2022. Late submissions would not be accepted.

Uploaded by

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

BBA Program

Spring 2022
ACT301: Intermediate Accounting
Assignment 2

Answer the following calculation 10 Marks

Please complete the following calculation and upload the pdf file in below link. Last date of
submission is 7 March, 2022. You answers will not be accepted after due time in the system.
Google form submission link: [Link]
1. Parrot Ltd had the following balances in its accounts at 30 April 2016 and 30 April 2017.

30 April 2016 (Tk.) 30 April 2017 (Tk.)


Cash in hand 1,000 1,100
Bank overdraft 41,627 –
Cash at bank – 21,932
Long-term bank loan 50,000 25,000

In accordance with IAS 7 Cash Flow Statements, what amount should be shown under net change in
cash and cash equivalents in the company’s cash flow statement for the year ended 30 April 2017?
2. The following is Sullivan Corp.’s comparative statement of financial position accounts at
December 31, 2015 and 2014, with a column showing the increase (decrease) from 2014 to 2015.

COMPARATIVE STATEMENTS OF FINANCIAL POSITION


2015 2014 Increase
(Decrease)
Property, plant and equipment $3,307,000 $2,967,000 $340,000
Accumulated depreciation (1,165,000) (1,040,000) (125,000)
Equity investment (Myers Co.) 310,000 275,000 35,000
Inventory 1,850,000 1,715,000 135,000
Accounts receivable 1,128,000 1,168,000 (40,000)
Debt investment 250,000 - 250,000
Cash 815,000 700,000 115,000
Total assets $6,495,000 $5,785,000 $710,000
Share capital—ordinary, $1 par $ 500,000 $ 500,000 —
Share premium—ordinary 1,500,000 1,500,000 —
Retained earnings 2,970,000 2,680,000 $290,000
Finance lease obligation 400,000 — 400,000
Accounts payable 1,015,000 955,000 60,000
Income taxes payable 30,000 50,000 (20,000)
Dividends payable 80,000 100,000 (20,000)
Total equity and liabilities $6,495,000 $5,785,000 $710,000

Additional information:
a. On December 31, 2013, Sullivan acquired 25% of Myers Co.’s ordinary shares for $275,000.
On that date, the carrying value of Myers’ assets and liabilities, which approximated their fair
values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31,
2015. No dividend was paid on Myers’ ordinary shares during the year.
b. During 2015, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first
semi-annual principal repayment of $50,000, plus interest at 10%, on December 31, 2015.
c. On January 2, 2015, Sullivan sold equipment costing $60,000, with a carrying amount of
$38,000, for $40,000 cash.
d. On December 31, 2015, Sullivan entered into a finance lease for an office building. The present
value of the annual rental payments is $400,000, which equals the fair value of the building.
Sullivan made the first rental payment of $60,000 when due on January 2, 2016.
e. Net income for 2015 was $370,000.
f. Sullivan declared and paid cash dividends for 2015 and 2014 as shown below.

2015 2014
Declared December 15, 2015 December 15, 2014
Paid February 28, 2016 February 28, 2015
Amount $80,000 $100,000

Required:
Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2015, using the
indirect method (Show the necessary workings).

Best of luck

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