Open Book Corporation Statement of Cash Flow For the year ended Dec. 31, 2019 Cash flows from operating activities: Net cash flows from operating activities. . Cash flows from investing activities: Purchases of marketable securities.. Proceeds from sale of marketable securities.. Loans made to borrowers.... Collection on loans... Cash paid to acquire plant assets.. Proceeds from sale of plant assets.. 150000 165000 140000 117000 112000 260000 175000 Net cash used by investing activities.. Cash flows from financing activities: Proceeds from short-term borrowing... Payments to settle short-term debts... Proceeds from issuing bonds payable.. Proceeds from issuing capital stock.. Dividends paid.... Net cash provided by financing activities.. Net increase (decrease) in cash.. Cash and cash equivalents, beginning of the year. Cash and cash equivalents, ending of the year. 115000 145000 155000 200000 150000 140000 200000 235000 140000 375000 Based on the given above statement of cash flow of BR Corp., you are required to examine firm's capacity to continue dividends payment at their current level i.e. Rs. 140,000 per annum. Relevant information is available as under.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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