Question

Question 2 (30 marks) Unit 9 - Statement of Cash Flow As the accountant for Awesome Foods Incorporated, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the indirect method and have gathered the following data from the accounting records: Principal payments on non-current debt$ 50,000 Collections on accounts receivable287,500 Increase in accounts payable24,300 Acquisition of equipment by issuing non-current note payable70,000 Depreciation expense71,300 Collection of loan principal58,000 Proceeds from sale of investments, not including $5,100 gain49,100 Increase in accounts receivable7,200 Cash payments to purchase capital assets62,000 Decrease in accrued liabilities30,600 Payment of cash dividends46,500 Income tax expense and payments39,300 Proceeds from sale of capital assets, not including $7,400 loss22,600 Net income147,100 I Cash sales217,400 Proceeds from issuance of common shares300,000 Increase in inventory41,700 Loan to another company 60,000 Bonds payable converted into common shares130,000 Payments to suppliers283,100 Decrease in prepaid expenses12,800 Cash balance: December 31, 201662,500 Cash balance: December 31, 2017452,000 Prepare the cash flow statement for the year ended December 31, 2017, using the indirect method.

Answer 1