Question

Question 1 (30 marks)

The condensed comparative statement of financial position and income statement (statements not in proper form) for Soccer Inc. as at/ for the year ended June 30, 2019, are as follows:

SOCCER INC.
Statement of Financial Position
June 30,
			2019	2018
	Cash		$9,500	$12,500
	Accounts receivable		31,000	23,200
	Interest receivable		1,600	900
	Notes receivable		20,000	18,500
	Inventory		63,600	56,000
	Investments - at cost		20,000	16,250
	Land		24,000	28,000
	Building		100,000	72,000
	Accumulated dep - building		(48,000)	(40,000)
	Equipment		35,000	36,800
	Accumulated dep - equip		(20,000)	(26,400)
	Total assets		$236,700	$197,750
	Accounts payable		$28,560	$24,800
	Accrued liabilities		5,040	5,600
	Unearned revenue		8,160	6,400
	Income tax payable		3,440	5,000
	Dividends payable		4,600	3,200
	Loans payable		20,000	25,000
	Total liabilities		69,800	70,000
	Common shares		40,000	32,000
	Retained earnings		126,900	95,750
	Total shareholders’ equity		166,900	127,750
	Total liabilities and shareholders’ equity		$236,700	$197,750

SOCCER INC.
Income Statement
for the Year Ended June 30, 2019
	Sales		$290,000
	Cost of merchandise sold		125,600
	Gross profit		164,400
	Salary & admin expense	50,000
	Interest expense	1,900
	Depreciation expense	20,000
	Interest income	(3,200)
	Gain on sale of equipment	(1,150)
	Loss on sale of land	2,000
	Income tax expense	18,250	87,800
Net income			$76,600

The following is additional information about Soccer’s transactions during fiscal 2019:

1. Land:  Land was sold for cash.  No land was purchased.
2. Building:  No buildings were disposed/sold. A building was purchased for cash.  
3. Equipment: Equipment with a cost of $29,000 was sold for cash and equipment was purchased for cash.  Equipment was also purchased of $2,500 in exchange for common shares.
4. Investments were purchased for cash.  Loans were taken out and remaining common shares were issued for cash.
5. The only changes in retained earnings were for net income and dividends.

Soccer Inc. follows ASPE.

Required

1. 1. Prepare the entire statement of cash flows in good form for Soccer Inc. for the year ended June 30, 2019.  Prepare the operating activities section using the indirect method.
      • Ensure you show all your calculations below. (See (b) as well.)
2. 2. Provide full calculations for the investing activities section.

3. Calculate for Soccer Inc. for the year ending June 30, 2019:
   1. Cash received from customers
   2. Cash received for interest
   3. Cash paid for income taxes
   4. Cash paid for interest

Answer 1