From the following information pertaining to Onyinyechukwu Limited, prepare a statement of cash flows for the year ended 31 December 2020.
Additional information about the financial performance of the business for the year ended 31 December 2020 is:
The profit before interest and income tax is ₦62,061.
Provision for doubtful debt is ₦3,251.50. This amount had been deducted from trade receivables.
The income tax on profits is ₦21,808.85.
Loan interest paid amounts to ₦1,000.
Investment income is ₦1,250.
On 1 January 2019, the company acquired building and equipment. Costs of building and equipment are ₦60,000 and ₦25,000, respectively. Building and equipment are depreciated on reducing balance bases of 20% and 25%, respectively.
Approximate the amounts in the solution to 2 decimal places.
See a suggested solution to practice activity 9.26 here.
Suggested solution to practice activity 9.26
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