Reference no: EM132532186

Question - Fool's Paradise Ltd had cash and cash equivalents at 1 January 2019 of $400,000. The transactions of Fool's Paradise Ltd for the year to 31 December 2019 are as follows:

Borrowed $850,000 with a 9-month loan payable.

Received $6,340,000 cash for customer accounts.

Sold for $360,000 cash a plant asset with a carrying amount of $180,000.

Issued ordinary shares for $480,000 cash.

Purchased a plant asset for $650,000; $237,500 in cash and $412,500 in loan.

Exchanged 60,000 shares for land with a fair value of $1,000,000.

Received a $350,000 dividend in cash.

Received $25,000 interest from term deposit.

Invested $500,000 cash on the short-term money market.

Paid fixed-term loan principal of $900,000 and interest of $90,000.

Cash payments for supplier's accounts $6,300,000.

Dividend paid during the period $200,000.

Wages expense shown in the income statement is $75,000. At the end of the year the balance sheet shows prepaid Wages expense of $65,000. There was a prepaid Wages expense of $35,000 at the beginning of the year.

Required - Prepare the statement of cash flows of Fool's Paradise Ltd for the year to 31 December 2019.