The income statement and additional data of Kratz Photography Ltd…. The

  

The income statement and additional data of Kratz Photography Ltd…. The income statement and additional data of Kratz Photography Ltd.​ follow:  Kratz Photography Ltd.   Income Statement    For the Year Ended December 31, 2020 Revenues:      Consulting revenue$155,000  Expenses:      Salaries expense$88,000    Amortization expense14,500    Rent expense6,000    Office supplies expense2,500    Insurance expense2,200    Interest expense1,000    Income tax expense9,500123,700  Net income  $31,300  a. Collections from clients are$4,700more than revenues. b. Increase in cash​ balance,$9,500. c. Payments to employees are$5,000less than salaries expense. d. Interest expense and income tax expense equal their cash amounts. e. Acquisition of​ property, plant, and equipment is$64,000.Of this​ amount,$54,000is paid in​ cash,$10,000by signing a​ long-term note payable. f. Cash received from sale of​ land,$9,000. g. Cash received from issuance of common​ shares,$23,000. h. Payment of​ long-term note​ payable,$14,000. i. Payment of cash​ dividends,$6,500. j. Payments for rent and insurance are equal to expense. k. Payment for office supplies is​$3,500more than expense. l. Opening cash​ balance,$14,000. Required1. Prepare Kratz Photography​ Ltd.’s cash flow statement by the direct method for operating activities and a note to the financial statements providing a summary of​ non-cash investing and financing activities.2. Assume Kratz Photography Ltd. has adopted IFRS. What would be the difference in the cash flow statement using this​ framework?          Business Accounting ACCOINTING 69 Share (0)