Question

Q2. (25 marks)

Given the following information for Lesson Hercules Incorporated prepare their statement of cash flows for December 31, 2017 under ASPE.

2017*2016*

Cash550365

Accounts receivable7585

Inventory3562

Prepaid Expenses225

Non-current - Note

receivable112300

Property, plant and

Equipment430460

(net of depreciation)

Accounts payable1340

Accrued liabilities1283

Common Shares934914

Retained Earnings265240

Net income50

Depreciation expense30

* in 000s

Answer 1

$ $ 50 Answer: Lesson Hercules Incorporated Statement of Cash Flow For the year ended December 31, 2017 Cash Flow from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash provided by Operating Activities: Depreciation Expenses Change in Operating Current Assets and Current Liabilities: Increase in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Accounts Payable Decrease in Accrued Liabiltiies $ $ 30 $ $ $ $ $ 10 27 -17 -27 -71 $ $ -48 2 $ 188 $ 188 Net Cash provided by Operating Activities Cash Flow from Investing Activities: Receipt from Notes Receivable Net Cash provided by Investing Activities Cash Flow from Financing Activities: Issuance of Common Shares Payment of Dividend Net cash used in Financing Activities Net Increase in Cash Add: Cash Balance at the beginning of year Cash balance at the end of year $ $ 20 -25 $ $ $ $ -5 185 365 550