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Question - 5 The account balances of the Elegant Industries Limited at the end of 2020 and 2021 are as follows: (10) Trinity Company Comparative Financial position Sheet 2021 2020 Change Increase/ Decrease Assets Cash Accounts Receivable Prepaid Insurance Inventory Land Plant Assets Accumulated depreciation Total Assets 47,500 21,500 2,500 48,000 20,000 230,000 (85,500) 284,000 24,300 26,000 1,800 45,500 10,000 190,000 (71,100) 226,500 23,200 (4,500) 700 2,500 10,000 40,000 (14,400) 57,500 Liabilities and Equity Liabilities Accounts Payable Salaries Payable Notes Payable Total Liabilities Equity Common Stock Retained Earnings Total Equity Total Liabilities and Equities 17,200 1,900 85,000 104,100 19,000 1,500 75,000 95,500 (1,800) 400 10,000 8,600 115,000 64,900 179,900 284,000 70,000 61,000 131,000 226,500 45,000 3,900 48,900 57,500 Trinity Company Income Statement Year Ended December 31, 2018 Sales COGS 238,000 (153,000) 85,000 (14,400) (3,500) (12,000) (42,600) (11,100) Operating Expenses Insurance Expenses Interest Expenses Salaries Expenses Other Operating Expenses Miscellaneous Expenses Operating Income Other Income Gain on sales of Land Profit before Tax (PBIT) Income Tax Expenses Net Income (83,600) 1,400 4,800 6,200 (1,860) 4,340 Additional Information: 1. Trinity Company sold land with an original cost of Rs. 10,000, for Rs. 14,800 cash. 2. A new parcel of land was purchased for Rs. 20,000, in exchange for a note payable. 3. Plant assets were purchased for Rs. 40,000 cash. 4. Trinity declared and paid a Rs. 440 cash dividend to shareholders. 5. Trinity issued common stock in exchange for Rs. 45,000 cash. Required Prepare the Cashflow statement by using indirect method

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