Question

The income statement and undassified statement of financial position for switch(a,lossom","Crane","uumber", "Ivanhoe", "Orio","Pharoah", "Sheridan", "Sunland,"Carla Vista Sandhar, Wildhorse", "lowon, Crane", " humbur", vanhoe, Oride", "Pharoah","Sheridan, Sunland, Carla Vista, Withor n e One Oumber, Inc. follow switch($a, BLOSSOM, CRANE, CULLUMBER", "IVANHOE, ORIOLE, PHAROAH","SHERIDAN","SUNLAND CARLA VISTA", "SANDHILL", "WILDHORSE,"BLOSSOM", "CRANE", "CULLUMBER","IVANHOE","ORIOLE","PHAROAH","SHERIDAN,"SUNLAND","CARLA VISTA", "SANDHILL", "WILDHORSE", "BLOSSOM", "CRANE", "CULLUMBER"), INC. Statement of Financial Position December 31 Assets 2017 Cash $98.800 $48,500 Held for trading investments 129.000 115.500 Accounts receivable 71,500 41,200 Inventory 122,100 94.400 Prepaid expenses 19,000 28,200 Equipment 284,500 254,000 Accumulated depreciation (50,000) (54000) Totalsts $674900 $52700 Elables and Shareholders' Equity Accounts payable $99.500 $78,300 Accrued Bates 10,000 7.900 Bank loan payable 78,400 149,600 Common shares 240.000 165.000 Retained earnings 247.000 127,000 Total abilities and shareholders' equity 3674,900 $527,800 switch (Sa. BLOSSON, CRANE, CULLUMBER",IVANHOE ORIOLEPHAROAK", SHERIDAN","SUNLAND","CARLA VISTA"-SANDHILL WILDHORSE BLOSSON", "CRANE".FOULLUMBER. IVANIDE","ORIOLEPHAROAKT, SHERIDAN-SUNLAND" "CARLA VESTA","SANDHILL", "WILDHORSE", "BLOSSON", "CRANE", "CULLUMBER"), INC. Income Statement Year Ended December 31, 2018 Sales $503.550 Cost of goods sold 187,050 Gross profit 3165 Operating expenses 116.400 Income from scrations 200,100 Other revenues and expenses Unrealized gain on held for trading investments $13,500 Interest expense (4,750) 8,750 Income before income tax 208,850 Income tax expense 42.000 Net Income

A.

prepare the statement of flows, using the indirect method.

B.

note X to the statement of Cash flows: during the year, the company purchased equipment costing $_____________ by paying $22,700 cash and issuing a $66,300 bank loan payable.

Answer 1

Solution:-

Cash Flow From Operating Activities
Net Income			166,850.00
	Adjustment to reconcile Net Income to
	Net Cash provided by Operating Activities
	Depreciation Expenses	46,600.00
	Loss on Disposal of Fixed Assets	6,000.00
	Unrealized Gain held for Trading Investments	(13,500.00)
	Increases in Account Receivables	(30,300.00)
	Increases in Inventory	(27,700.00)
	Decrease in Prepaid Expenditure	9,200.00
	Increase in Accounts Payable	21,200.00
	Increase in Accrued Liabilities	2,100.00
			13,600.00
Net Cash Flow Provided by Operating Activities			180,450.00
	Cash Flow from Investing Activities
	Proceeds from Disposal of Equipments	1,900.00
	Purchase of Equipments	(89,000.00)
Net Cash Used By Investing Activities			(87,100.00)
	Cash Flow from Financing Activities
	Sale of Common Share	75,000.00
	Repayment of Bank Loan	(71,200.00)
	Payment of Cash Dividend	(46,850.00)
Net Cash Used By Financing Activities			(43,050.00)
Net Increase in Cash			50,300.00
	Cash January 1		48,500.00
	Cash December 31		98,800.00