Answer Happy

Presented below are the financial statements of Tamarisk Ltd. Tamarisk Ltd. Comparative Statements of Financial Position December 31 Assets 2020 2019 Equipment £57,600 £74,880 Accumulated depreciation-equipment (27,840) (23,040) Inventory 28,800 19,200 Accounts receivable 31,680 13,440 Cash 35,520 19,200 Total £125,760 £103.680 Equity and Liabilities Share capital-ordinary £17,280 £13,440 Retained earnings 48,000 36,480 Bonds payable 25,920 31,680 Accounts payable 27,840 14,400 Income taxes payable 6,720 7,680 Total £125,760 £103.680
Rajesh Ltd. Income Statement For the Year Ended December 31, 2020 Sales revenue £232,320 Cost of goods sold 168,000 Gross profit 64,320 Operating expenses 23,040 Income from operations 41,280 Interest expense 2,880 Income before income taxes 38,400 Income tax expense 7,680 Net income £30,720 Additional data: 1. Depreciation expense is £12,768. 2. Dividends declared and paid were £19,200. 3. During the year, equipment was sold for £9,312 cash. This equipment cost £17,280 originally and had accumulated depreciation of £4,800 at the time of sale.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) TAMARISK LTD. Statement of Cash Flows 2 4 £ Adjustments to reconcile net income to 4 > £ 4
£
Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow £