Question

Swifty Corp.'s statement of financial position at the end of 2019 included the following items: $1,193,500 1,191,000 194,000 186,000 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation equipment Intangible assets-patents Total $1,255,000 Current liabilities 31,300 Bonds payable 1,270,000 Common shares 327,000 Retained earnings (148,000) (11,600) 40,800 $2,764,500 Total $2,764,500 The following information is available for the 2020 fiscal year: 1. Net income was $411,000. 2. Equipment (cost of $21,700 and accumulated depreciation of $8,100) was sold for $11,700. 3. Depreciation expense was $4,150 on the building and $9,010 on equipment. 4. Amortization expense on a patent was $3,070. 5. Current assets other than cash increased by $32,000. Current liabilities increased by $25,000. 6. An addition to a building was completed at a cost of $31,700. 7. An FV-OCI investment in shares was purchased for $22,100 on the last day of the year. This was the first such investment made by Swifty in its history. 8. Bonds payable of $75,300 were issued at par. 9. Cash dividends of $194,000 were declared and paid. Dividends paid are treated as financing activities. Swifty prepares financial statements in accordance with IFRS. Prepare a statement of financial position (SFP) as at December 31, 2020. (Hint: You will need to adjust "plug") the December 31, 2020 amount of current assets to ensure the SFP balances.) (List Property, plant and Equipment in order of Land, Buildings and Equipment.) Swifty Corporation Statement of Financial Position Assets

Answer 1

Part 1

Swifty Corporation Statement of Financial Position December 31, 2019
Assets
Current assets			1548330
FV – OCI Investments			22100
Property, plant, and equipment
Land		31300
Buildings (1270000+31700)	1301700
Less accumulated depreciation (148000+4150)	(152150)	1149550
Equipment (327000-21700)	305300
Less accumulated depreciation (11600-8100+9010)	(12510)	292790
Total			1473640
Intangible assets - Patents, net (40800-3070)			37730
Total assets			$3081800
Liabilities and Shareholders’ Equity
Current liabilities (1193500+25000)			1218500
Long-term liabilities
Bonds payable (1191000+75300)			1266300
Total liabilities			2484800
Shareholders’ equity
Common shares		194000
Retained earnings (186000+411000-194000)		403000
Total shareholders’ equity			597000
Total liabilities and shareholders’ equity			$3081800

Part 2

Swifty Corporation Statement of Cash Flows For the Year Ended December 31, 2019
Cash flows from operating activities
Net income		411000
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on sale of equipment (21700-8100-11700)	1900
Depreciation expense	13160
Patent amortization expense	3070
Increase in current liabilities	25000
Increase in current assets (other than cash)	(32000)	11130
Net cash provided by operating activities		422130
Cash flows from investing activities
Proceeds from sale of equipment	11700
Addition to building	(31700)
Purchase of FV- OCI investments	(22100)
Net cash used by investing activities		(42100)
Cash flows from financing activities
Issuance of bonds	75300
Payment of dividends	(194000)
Net cash used by financing activities		(118700)
Net increase in cash		$261330