Question

The following are Ivanhoe Corp's comparative balance sheet accounts at December 31, 2020 and 2019 with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS Increase (Decrease) 2020 2019 Cash $812,400 $700,100 $112,300 Accounts receivable 1,135,500 1,158,500 (23.000) Inventory 1,844.800 1,713,900 130.900 Property, plant, and equipment 3,316,600 2,964 200 352,400 Accumulated depreciation (1.160.900 (1.040,300) (120.600) 309,500 274,000 35,500 Investment in Myers Co. Loan receivable Total assets 250,500 250,500 $6,508,400 $5,770,400 $738,000 $1,015,400 $955,000 $60,400 29,900 50,300 (20.400) (20,900) 79,600 100,500 412.000 412,000 Accounts payable Income taxes payable Dividends payable Lease liability Common stock. $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity 500.000 500.000 1,511,500 1,511,500 2.960,000 2,653.100 306.900 $6,508,400 $5.770.400 $738,000 Additional information: 1. On December 31, 2019. Ivanhoe acquired 25% of Myers Co's common stock for $274,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142.000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. 2. During 2020, Ivanhoe loaned $312.200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700.plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Ivanhoe sold equipment costing 559,600 with a carrying amount of $37,700, for $40,200 cash. 4. On December 31, 2020, Ivanhoe entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which uals the fair value of the building. Ivanhoe made the first rental ment of $59,700 when due on January 2, 2021. 5. Net income for 2020 was $386,500. 6. Ivanhoe declared and paid the following cash dividends for 2020 and 2019. 2020 2019 Declared December 15, 2020 December 15, 2019 Paid February 28, 2021 February 28, 2020 Amount $79,600 $100,500

Answer 1

Required statements:

A B C 1 2 3 $386,500 IVANHOE CORP. Statement of Cash flow For the year ended December 31, 2020 4 Cash Flow from Operating Activities : 5 Net Income Adjustments to Reconcile net income to net 6 cash provided by operating activities : 7 Depreciation $142,500 8 Gain on Sale of Equipment -$2,500 9 Equity in Earning of Myers Co. -$35,500 10 Decrease in Accounts Receivable $23,000 11 Increase in Inventory -$130,900 12 Increase in Accounts Payable $60,400 13 Decrease in Income Tax Payable -$20,400 14 Net Cash Flow from Operating Activities 15 Cash Flow from Investing Activities : 16 Sale of Equipment $40,200 17 Loan to TLC Co. -$312,200 18 Principal Repayment of Loan $61.700 19 Net Cash Flow from Investing Activities 20 Cash Flow from Financing Activities : 21 Dividend Paid -$100,500 22 Net Cash Flow from Financing Activities 23 Net Increase in Cash 24 Add : Beginning Balance of Cash 25 Ending Balance of Cash $36,600 $423.100 -$210,300 -$100.500 $112,300 $700,100 $812,400

Formula table: