INDIRECT

Suka at Patis Company

Statement of Cash Flows
For the Year Ended December 31, 2020

Net Income 110,000

Adjustments
Amortization of Discount (23,000)
Gain on Sale of Equipment (200,000)
Depreciation Expense 250,000
Loss on impairment of equipment 300,000 327,000
Net Income Before Working Capital Changes 437,000
Changes in Working Capital
Accounts Receivable (15,000)
Allowance for DA (1,000)
Advances to Suppliers (14,500)
Inventory (40,000)
Prepaid Rent 12,500
Rent Receivable (10,000)
Interest Receivable 70,000
Deferred Tax Asset (7,500)
Accounts Payable 50,000
Trade Notes Payable (60,000)
Unearned Rent Income 25,000
Salaries Payable (60,000)
Rent Payable (18,000)
Income Tax Payable 30,000 (38,500)
Cash inflows from operating activities 398,500

Acquisition of Land (150,000)

Purchase of Equipment (1,074,000)
Proceeds from Sale of Equipment 300,000
Cash outflows from investing activities (924,000)

Withdrawals (40,000)
Additional Investments 100,000
Proceeds from Bank Loans 500,000
Cash inflows from financing activities 560,000
Increase in cash and cash equivalents 34,500
Cash and cash equivalents, beginning balance 50,000
Cash and cash equivalents, ending balance 84,500
DIRECT

Suka at Patis Company

Statement of Cash Flows
For the Year Ended December 31, 2020

Collections from customers 2,144,000

Payment to suppliers (944,500)
Income received 165,000
Salaries paid (560,000)
Rent paid (205,500)
Utilities paid (100,000)
Other expenses paid (145,000)
Cash generated from operations 354,000
Interest received 97,000
Income Taxes Paid (52,500)
Cash inflow from operating activities 398,500

Acquisition of Land (150,000)

Purchase of Equipment (1,074,000)
Proceeds from Sale of Equipment 300,000
Cash outflow generated from investing activities (924,000)

Withdrawals (40,000)
Additional Investments 100,000
Proceeds from Bank Loans 500,000
Cash inflows from financing activities 560,000
Increase in cash and cash equivalents 34,500
Cash and cash equivalents, beginning balance 50,000
Cash and cash equivalents, ending balance 84,500
B Cash 100,000.00 Financing
Amoy, Capital 100,000.00
B
Land 50,000.00
Amoy, Capital 50,000.00

C Land 150,000.00 Investing

Cash 150,000.00

D Amoy, Capital 40,000.00 Financing

Cash 40,000.00

D Amoy, Capital 20,000.00

Inventory 20,000.00

E Equipment 1,074,000.00 Investing

Cash 1,074,000.00

F Cash 73,000.00 Investing

Investment in bonds 23,000.00
Interest Income 50,000.00

G Cash 500,000.00 Financing

Bank Loan Payable 500,000.00
 ASSE
Allowance
Cash & Cash Accounts Advances to
for Doubtful Inventory
Equivalents Receivable Suppliers
Accounts
50,000.00

398,500.00 15,000.00 1,000.00 14,500.00 40,000.00

B Financing 100,000.00
B
C Investing - 150,000.00
D Financing - 40,000.00
D - 20,000.00
E Investing - 1,074,000.00
G Financing 500,000.00

Investing 300,000.00

84,500.00 15,000.00 1,000.00 14,500.00 20,000.00

 ASSETS

Prepaid Rent Interest Accumulated Investment in

Land PPE
Rent Receivable Receivable Depreciation Bonds

- 12,500.00 10,000.00 - 70,000.00 23,000.00

50,000.00
150,000.00

1,074,000.00

- 250,000.00
- 624,000.00 524,000.00
- 300,000.00

- 12,500.00 10,000.00 - 70,000.00 200,000.00 450,000.00 - 26,000.00 23,000.00

 LIABILITIES & EQUITY
Trade Unearned
Deferred Accounts Salaries Rent Income Tax
Notes Rent Bank Loans
Tax Asset Payable Payable Payable Payable
Payable Income

7,500.00 50,000.00 - 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00

500,000.00

7,500.00 50,000.00 - 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00 500,000.00

717,000.00 717,000.00
May Amoy, Revenue
Capital (Expenses)

50,000.00

460,000.00 Net Income Before Working Capital Changes

100,000.00
50,000.00

- 40,000.00
- 20,000.00

- 250,000.00 Depreciation Expense

200,000.00 Gain on sale of equipment
- 300,000.00 Loss on impairment of equipment
110,000.00 Net Income
110,000.00 - 110,000.00 Closing Entry
250,000.00
 ASSETS
Allowance
Cash & Cash Accounts Advances to Prepaid
for Doubtful Inventory
Equivalents Receivable Suppliers Rent
Accounts
50,000.00
2,144,000.00 15,000.00 41,000.00
- 944,500.00 14,500.00 40,000.00
165,000.00
- 560,000.00
- 205,500.00 - 12,500.00
- 100,000.00
- 40,000.00
- 145,000.00
- 45,000.00
70,000.00
- 7,500.00
B Financing 100,000.00
B
C Investing - 150,000.00
D Financing - 40,000.00
D - 20,000.00
E Investing - 1,074,000.00
F Investing 27,000.00
G Financing 500,000.00

Investing 300,000.00

84,500.00 15,000.00 1,000.00 14,500.00 20,000.00 - 12,500.00

 ASSETS

Rent Interest Accumulated Investment in Deferred Accounts

Land PPE
Receivable Receivable Depreciation Bonds Tax Asset Payable

50,000.00
10,000.00

- 70,000.00
7,500.00

50,000.00
150,000.00

1,074,000.00
23,000.00

- 250,000.00
- 624,000.00 524,000.00
- 300,000.00

10,000.00 - 70,000.00 200,000.00 450,000.00 - 26,000.00 23,000.00 7,500.00 50,000.00

717,000.00 717,000.00
 LIABILITIES & EQUITY
Trade Unearned
Salaries Rent Income Tax May Amoy, Revenue
Notes Rent Bank Loans
Payable Payable Payable Capital (Expenses)
Payable Income
50,000.00
2,200,000.00
- 60,000.00 - 880,000.00
25,000.00 150,000.00
- 60,000.00 - 500,000.00
- 18,000.00 - 200,000.00
- 100,000.00
- 40,000.00
- 145,000.00
30,000.00 - 75,000.00

100,000.00
50,000.00

- 40,000.00
- 20,000.00

50,000.00
500,000.00
- 250,000.00
200,000.00
- 300,000.00
110,000.00
110,000.00 - 110,000.00
- 60,000.00 25,000.00 - 60,000.00 - 18,000.00 30,000.00 500,000.00 250,000.00
Sales
COGS
Rent Income
Salaries Expense
Rent Expense
Utilities Expense
Doubtful Accounts
Other Expenses
Income Tax

Interest Income on Bonds Investment

Depreciation Expense
Gain on sale of equipment
Loss on impairment of equipment
Net Income
Closing Entry
INDIRECT

Tick Tack Company

Statement of Cash Flows
For the Year Ended December 31, 2020

Net Income 2,467

Adjustments
Unrealized gain (7)
Loss on Sale of Equipment 21
Depreciation Expense 28
Salaries - Share Options 28
Amortization of Discount 7
Amortization of Premium 21 98
Net Income Before Working Capital Changes 2,565
Changes in Working Capital
Accounts Receivable (2,509)
Allowance for Doubtful Accounts 6
Inventory (140)
Prepaid Expenses (14)
Deferred Tax Asset (11)
Accounts Payable 840
Notes Payable (100)
Accrued Expenses 42
Interest Payable (112)
Income Tax Payable 70 (1,928)
Cash inflow from operating activities 637

Payment for Repair of Equipment (84)

Acquisition of Equipment (210)
Proceeds from Sale of Equipment 42
Cash outflow from investing activities (252)

Payment of Bonds Payable (280)

Payments of Cash Dividends (112)
Proceeds from Exercising Share Options 170
Cash outflow from financing activities (222)
Increase in cash and cash equivalents 163
Cash and cash equivalents, beginning balance 420
Cash and cash equivalents, ending balance 583
DIRECT

Tick Tack Company

Statement of Cash Flows
For the Year Ended December 31, 2020

Collections from customers 10,080

Payments to suppliers (7,660)
Accrued Expenses Paid (700)
Cash generated from operations 1,720
Interest paid (168)
Interest received 91
Income taxes paid (1,006)
Cash inflow from operating activities 637

Payment for Repair of Equipment (84)

Acquisition of Equipment (210)
Proceeds from Sale of Equipment 42
Cash outflow from investing activities (252)

Payment of Bonds Payable (280)

Payments of Cash Dividends (112)
Proceeds from Exercising Share Options 170
Cash outflow from financing activities (222)
Increase in cash and cash equivalents 163
Cash and cash equivalents, beginning balance 420
Cash and cash equivalents, ending balance 583
 Accounts Allowance for
Cash
Receivable doubtful accounts

Beginning Balances 420 170 (10)

637 2,520 (17)

Increase (Decrease) in WC
(11) 11
Cash Dividends Paid Financing (112)
Payment of Notes Payable Operating
Payments of Bonds Payable Financing (280)

C Investing (84)
F Financing 170

D Investing (210)
E

B Investing 42

Ending Balances 583 2,679 (16)

Operating Operating

583 2,679 (16)

 ASSETS

Trading Prepaid Accumulated Deffered Investment

Inventory Equipment Land
securities Expenses Depreciation tax asset in bonds

210 110 110 700 (10) 30 1,190 1,120

140 14 11 (21)

84

280
700
7
(70) 7
(28)

217 250 124 994 (31) 41 1,169 1,820

Operating Operating Operating Investing Investing Operating Investing Investing

217 250 124 994 (31) 41 1,169 1,820

7,830
 LIABILITIES & EQUITY

Accounts Dividends Accrued Notes Interest Income Tax Bonds

Payable Payable Expenses Payable Payable Payable Payable

70 10 30 280 130 10 1,400

840 42 (100) (112) 70

28

(280)

70

910 38 72 250 18 80 1,120

Operating Financing Operating Financing Operating Operating Financing

910 38 72 250 18 80 1,120

7,830
ITIES & EQUITY

Discount on Ordinary Share Share options Retained Revenue Nominal

bonds payable Share Premium outstanding Earnings (Expenses) Accounts

(40) 700 350 210 890

2,544 Net Income Before Working C

(140)

7 (7) Interest Expense

140 100 (70)

28 (28) Salaries - Share Options

560 140
7 Unrealized Gain
(21) Loss on sale of equipment
(28) Depreciation Expense
2,467 Net Income
2,467 (2,467)
(33) 1,400 590 168 3,217
Financing Financing Financing Financing Financing

(33) 1,400 590 168 3,217

et Income Before Working Capital Changes

terest Expense

laries - Share Options

nrealized Gain
ss on sale of equipment
epreciation Expense
 Cash Accounts Allowance for
Receivable doubtful accounts

Beginning Balances 420 170 (10)

10,080 2,520
(7,660)

(17)
(700)
(168)
(995)
(11)

G (11) 11
Cash Dividends Paid Financing (112)
Payments of Bonds Payable Financing (280)
C Investing (84)
F Financing 170

D Investing (210)
E
A Investing 91
B Investing 42

Ending Balances 583 2,679 (16)

Operating Operating

583 2,679 (16)

 ASSETS

Trading Inventory Prepaid Equipment Accumulated Deffered Investment in Land

securities Expenses Depreciation tax asset bonds

210 110 110 700 (10) 30 1,190 1,120

140
7

14

11

84

280
700
(21)
(70) 7
(28)

217 250 124 994 (31) 41 1,169 1,820

Operating Operating Operating Investing Investing Operating Investing Investing

217 250 124 994 (31) 41 1,169 1,820

7,830
 LIABILITIES & EQUITY

Accounts Dividends Accrued Notes Interest Income Tax Bonds Discount on

Payable Payable Expenses Payable Payable Payable Payable bonds payable

70 10 30 280 130 10 1,400 (40)

840 (100)

42
(112) 7
70

28
(280)

70

910 38 72 250 18 80 1,120 (33)

Operating Financing Operating Financing Operating Operating Financing Financing

910 38 72 250 18 80 1,120 (33)

7,830
 Ordinary Share Share options Retained Revenue Nominal
Share Premium outstanding Earnings (Expenses) Accounts

700 350 210 890

12,600 Sales
(8,260) Cost of Sales
7 Unrealized gain on change in fair value
(17) Bad Debts Expense
(728) Other Expenses
(63) Interest Expense
(1,065) Income Tax Expense

(140)

140 100 (70)

28 (28) Salaries - Share Options

560 140
70 Interest Income in Bonds Investments
(21) Loss on sale of equipment
(28) Depreciation Expense
2,467 Net Income
2,467 (2,467)
1,400 590 168 3,217
Financing Financing Financing Financing

1,400 590 168 3,217

ge in fair value

s Investments