The comparative statements of financial position of Mikos Inc. as at December 31

Question

The comparative statements of financial position of Mikos Inc. as at December 31, 2017 and 2018, and its statement of earnings for the year ended December 31, 2018, are presented below:   

MIKOS INC. Comparative Statements of Financial Position December 31 2018 2017   Assets   Cash $ 10,600 $ 18,600   Short-term investments 72,200 40,800   Accounts receivable 76,000 32,400   Inventories, at cost 57,200 41,600   Prepaid expenses 5,600 9,200   Land 51,400 78,000   Property, plant, and equipment, net 286,400 187,000   Intangible assets 25,600 31,200 $ 585,000 $ 438,800   Liabilities and Shareholders’ Equity   Accounts payable $ 18,600 $ 43,200   Income tax payable 9,200 2,600   Accrued liabilities 11,600 -0-   Long-term notes payable 126,000 182,000   Contributed capital 232,000 68,000   Retained earnings 187,600 143,000 $ 585,000 $ 438,800

Explanation / Answer

MIKOS INC statement of cash flows for Mikos Inc. for the year ended December 31, 2018 Operating Activities Amount in $ Net Income 112840 Adjustments Amortisation expenses Intangable assets 5600 Depreciation expense—buildings and equipment 34600 Increase in short-term investments -31400 Increse in Inventories -15600 Increse in Trade receivables -43600 Decrese in Prepayments 3600 Decrese in Trade Payables -24600 Increse in Income tax payables 6600 Increse in accured Liabilities 11600 Cash Flow from Operating Activities 59640 Investing Activities Sale of Land 26600 Purchase of New Equipment -167600 Sale of Old Equipment 33600 Net cash from Investing activities -107400 Financing activities Dividends Paid -68240 Long term Notes paid -18000 Increse in share capital 126000 Net cash from Financing activities 39760 Net Increse in Cash -8000 Cash , January 1 18600 Cash , December 31 10600 * Sale of Old Equipment = Opening Value + Equipemt Purchased -Depreciation Charged - Closing Value = 187000+167600-34600-286400= $33600 * Dividend Paid =Opening Retained earnings + Net Profit - Closing Retained earnings =143000+112840-187600=$68240 * Increse in Capital = Closing Capital - Opening Capital - Converted capital =$232000-68000-38000 =$126000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.