CFFOA-indirect-simplified (US-GAAP) CFFOA-direct method

NPAT 68,400 Receipts from customers

Changes in working capital

Payments to suppliers

Payments to others

Interest paid
Income tax paid
Net cash inflow from OA Net cash inflow (outflow) from OA
=SUM(G4:G20) +J10+J14+J19+J21+J22
KwikKat Katering Pte Limited

Balance sheets 20x2 20x1 Change p

Cash 14,300 5,300 9,000 é
Accounts receivable 28,600 28,100 500 é
Allowance for Uncollectible AR (600) (1,200) 600 ê
Inventories 83,600 87,200 (3,600) ê
Prepaid expenses 3,900 2,600 1,300 é
Total current assets 129,800 122,000
Land 119,000 60,000 59,000 é
Equipment 77,500 79,400 (1,900) ê
Accumulated depreciation (28,000) (30,000) 2,000 ê
Total non-current assets 168,500 109,400
Total assets 298,300 231,400

Accounts payable (inventory) 31,400 28,800 2,600 é

Accrued expenses 16,800 22,600 (5,800) ê
Interest payable 4,400 4,900 (500) ê
Income tax payable 8,900 7,700 1,200 é
Dividends payable 25,000 0 25,000 é
Unearned revenue 1,600 0 1,600 é
Total current liabilities 88,100 64,000
Bank loan 75,000 100,000 (25,000) ê
Total non-current liabilities 75,000 100,000
Total liabilities 163,100 164,000
Paid-up capital: Ordinary shares 118,300 64,700 53,600 é
Retained earnings 16,900 2,700 14,200 é
Total Owners' equity 135,200 67,400
Total liabilities & Owners' equity 298,300 231,400

Income Statement 20x2

Net Sales 221,600 NEW
Cost of Goods Sold (70,600)
Gross profit 151,000
Bad debt expense (600)
Depreciation expense-PPE (4,000)
Interest expense (11,600)
Other expenses (38,300)
Total expenses (54,500)
Gain on sale of equipment 1,000
Total other revenue & expenses 1,000
Net profit before tax 97,500
Income tax expense (29,100)
Operating profit after tax 68,400
Cash inflows = + Revenues, é Liabilities, é OE, ê Other Assets
Cash (outflows) = (Expenses), ê Liabilities, ê OE, é Other Assets
PPE-equipment
Cashflows from Investing Activities O/bal 79,400

E/bal 77,500
Equip. pur. for cash =
Net cash (outflows) from IA
Accumulated depreciation-equ

Cashflows from Financing Activities

A/dep. of equip sold =

No need to do this, but it is a good cross-
Net cash (outflow) from FA make sure you have not overlooked anyt
(Cost 10,000 - CV 4,000 = 6,000 A/dep.)

Additional information (A-I) Sale of equipment

In addition to the above, you also become Gain on sale
aware of the following: add: Carrying value
1. Land, with a market value of $10,000 was Cash received
acquired in exchange for shares;
2. Equipment was sold during the year for Land
$5,000 cash. It had an original cost of $10,000 O/Bal 60,000
and a net book value of $4,000.
3. During the year, equipment and more
land were purchased for cash, shares were E/bal 119,000
issued for cash and a portion of the bank Land purchase for cash =
loan had been repaid.

4. On the last day of the year, the company Share capital

received a deposit for a wedding dinner.
5. On the last day of the year, Bad
Company unexpectedly paid $100 cash
(the debt was previously written off)
Shares issued for cash =

Retained earnings
Dividends DECLARED =

Dividends paid

Dividend paid in cash

PPE-equipment

ed depreciation-equipment
30,000 O/bal

28,000 E/bal

but it is a good cross-check to

e not overlooked anything.
4,000 = 6,000 A/dep.)

Land

Share capital
64,700 O/bal

118,300 E/bal

etained earnings
 2,700 O/bal

16,900 E/bal
CFFOA-indirect-simplified (US-GAAP) CFFOA-direct method

NPAT 68,400 Receipts from customers

Depreciation expense-PPE 4,000 Net Sales 221,600
Gain on sale of equipment (1,000) Less: Bad debts written off (1,300)
Add: Cash rec'd from previously w-off AR 100
Change in AR (500)
Change in unearned revenue 1,600
Changes in working capital 221,500
Accounts receivable (500) Payments to suppliers
Allowance for Uncollectible AR (600) Purchases (67,000)
Inventories 3,600 Change in AP 2,600
Prepaid expenses (1,300) (64,400)
Accounts payable (inventory) 2,600 Payments to others
Accrued expenses (5,800) Other expenses (38,300)
Income tax payable 1,200 Change in prepaid expenses (1,300)
Interest payable (500) Change in accrued expenses (5,800)
Dividends payable (45,400)
Unearned revenue 1,600
Interest paid (12,100)
Income tax paid (27,900)
Net cash inflow (outflow) from OA 71,700 Net cash inflow (outflow) from OA 71,700
=SUM(G4:G20) +J10+J14+J19+J21+J22
KwikKat Katering Pte Limited

Balance sheets 20x2 20x1 Change p

Cash 14,300 5,300 9,000 é
Accounts receivable 28,600 28,100 500 é
Allowance for Uncollectible AR (600) (1,200) 600 ê
Inventories 83,600 87,200 (3,600) ê
Prepaid expenses 3,900 2,600 1,300 é
Total current assets 129,800 122,000
Land 119,000 60,000 59,000 é
Equipment 77,500 79,400 (1,900) ê
Accumulated depreciation (28,000) (30,000) 2,000 ê
Total non-current assets 168,500 109,400
Total assets 298,300 231,400

Accounts payable (inventory) 31,400 28,800 2,600 é

Accrued expenses 16,800 22,600 (5,800) ê
Interest payable 4,400 4,900 (500) ê
Income tax payable 8,900 7,700 1,200 é
Dividends payable 25,000 0 25,000 é
Unearned revenue 1,600 0 1,600 é
Total current liabilities 88,100 64,000
Bank loan 75,000 100,000 (25,000) ê
Total non-current liabilities 75,000 100,000
Total liabilities 163,100 164,000
Paid-up capital: Ordinary shares 118,300 64,700 53,600 é
Retained earnings 16,900 2,700 14,200 é
Total Owners' equity 135,200 67,400
Total liabilities & Owners' equity 298,300 231,400

Income Statement 20x2

Net Sales 221,600 NEW
Cost of Goods Sold (70,600)
Gross profit 151,000
Bad debt expense (600)
Depreciation expense-PPE (4,000)
Interest expense (11,600)
Other expenses (38,300)
Total expenses (54,500)
Gain on sale of equipment 1,000
Total other revenue & expenses 1,000
Net profit before tax 97,500
Income tax expense (29,100)
Operating profit after tax 68,400
 PPE-equipment
Cashflows from Investing Activities O/bal 79,400

Sale of equipment 5,000 Purchases 8,100

Purchase of equipment (8,100) E/bal 77,500
Purchase of land (49,000) Equip. pur. for cash =
Net cash (outflows) from IA (52,100)
Accumulated depreciatio

Cashflows from Financing Activities

PPE Sold 6,000
Ordinary shares 43,600
Bank loan (25,000) A/dep. of equip sold =
Dividends paid (29,200) No need to do this, but it is a good cross-
Net cash (outflow) from FA (10,600) make sure you have not overlooked anyt
(Cost 10,000 - CV 4,000 = 6,000 A/dep.)

Additional information (A-I) Sale of equipment

In addition to the above, you also become Gain on sale
aware of the following: add: Carrying value
1. Land, with a market value of $10,000 was Cash received
acquired in exchange for shares;
2. Equipment was sold during the year for Land
$5,000 cash. It had an original cost of $10,000 O/Bal 60,000
and a net book value of $4,000. Shares 10,000
3. During the year, equipment and more 2nd land 49,000
land were purchased for cash, shares were E/bal 119,000
issued for cash and a portion of the bank Land purchase for cash =
loan had been repaid.

4. On the last day of the year, the company Share capital

received a deposit for a wedding dinner.
5. On the last day of the year, Bad
Company unexpectedly paid $100 cash
(the debt was previously written off)
Shares issued for cash =

Retained earnings
Div. decl. 54,200

Dividends DECLARED =

Dividends paid
Declared
Change in Dividends Pay
Dividend paid in cash
PPE-equipment

10,000 Sale H/cost

8,100

mulated depreciation
30,000 O/bal
4,000 Income Stmt

28,000 E/bal
6,000
but it is a good cross-check to
e not overlooked anything.
4,000 = 6,000 A/dep.)

1,000
4,000
5,000

Land

49,000

Share capital
64,700 O/bal
10,000 Land
43,600 Cash
118,300 E/bal
43,600

etained earnings
2,700 O/bal
68,400 NPAT
16,900 E/bal
54,200

(54,200)
25,000
(29,200)
KwikKat Katering Pte Limited
Statement of Cash Flows
For the year ending 20x2

LEARN FOR THE EXAM

CFFOA-indirect-simplified (US-GAAP)
NPAT 68,400
Depreciation expense-PPE 4,000
Gain on sale of equipment (1,000)
Accounts receivable (500)
Allowance for Uncollectible AR (600)
Inventories 3,600
Prepaid expenses (1,300)
Accounts payable (inventory) 2,600
Accrued expenses (5,800)
Income tax payable 1,200
Interest payable (500)
Dividends payable
Unearned revenue 1,600
Net cash inflow from OA 71,700

OR

CFFOA-direct method
Receipts from customers
Net Sales 221,600
Less: Bad debts written off (1,300)
Add: Cash rec'd from previously w-off AR 100
Change in AR (500)
Change in unearned revenue 1,600
221,500
Payments to suppliers
Purchases (67,000)
Change in AP 2,600
(64,400)
Payments to others
Other expenses (38,300)
Change in prepaid expenses (1,300)
Change in accrued expenses (5,800)
(45,400)

Interest paid (12,100)

Income tax paid (27,900)
Net cash inflow from OA 71,700

Cashflows from Investing Activities

Sale of equipment 5,000
Purchase of equipment (8,100)
Purchase of land (49,000)
Net cash (outflows) from IA (52,100)

Cashflows from Financing Activities

Ordinary shares 43,600
Bank loan (25,000)
Dividends paid (29,200)
Net cash (outflow) from FA (10,600)

Net cash inflow (outflow) 9,000

Cash at the beginning of the year 5,300
Cash at the end of the year 14,300
No need to type "Changes in Working Capital"