1. Net income was $52,000. 2. A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $39,000 was recorded when an old building was sold for $57,.000 cash. A new building was purchased for $367,000 and depreciation expense on buildings for the year was $60,000. 3. Equipment costing $68.000 was purchased while a loss of $9.000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $11,000. 4. 5. The company took out $205,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company. (а) Prepare the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with elther a- sign eg. -15,000 or in
1. Net income was $52,000. 2. A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $39,000 was recorded when an old building was sold for $57,.000 cash. A new building was purchased for $367,000 and depreciation expense on buildings for the year was $60,000. 3. Equipment costing $68.000 was purchased while a loss of $9.000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $11,000. 4. 5. The company took out $205,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company. (а) Prepare the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with elther a- sign eg. -15,000 or in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![P.
P.
Bank loan payable-current portion
P.
26,000
21,000
P.
P.
P.
Bank loan payable-non-current portion
382,000
217,000
P.
Common shares
P.
196,000
89,000
Retained earnings
41,000
26,000
P.
P.
P.
Total liabilities and shareholders' equity
$695,000
$396.000
P.
P.
P.
P.
Additional information regarding 2021:
P.
P.
1.
Net income was $52,000.
P.
P.
P.
2.
A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year.
A gain on the disposal of $39,000 was recorded when an old building was sold for $57,000 cash. A new building was
purchased for $367.000 and depreciation expense on buildings for the year was $60,000.
3.
P.
P.
P.
P.
Equipment costing $68.000 was purchased while a loss of $9,000 was recorded on equipment that was sold for $5,000. The
equipment that was sold late in the year had accumulated depreciation of $11,000.
4.
5.
The company took out $205,000 of new bank loans during the year.
6.
Dividends were declared and paid and no common shares were bought back by the company.
(a)
Prepare the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with elther a- sign eg. -15,000 or in
parenthesis eg. (15,000).)
CARLA VISTA LTD.
Statement of Cash Flows-Indirect Method
422 PM
4/12/2022
22er](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc69d710-fcd9-4562-932e-dd67c4f1ce9e%2Fbe5d1796-6240-44f6-9ee7-e70c93dcdabe%2Fjcdhnyt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P.
P.
Bank loan payable-current portion
P.
26,000
21,000
P.
P.
P.
Bank loan payable-non-current portion
382,000
217,000
P.
Common shares
P.
196,000
89,000
Retained earnings
41,000
26,000
P.
P.
P.
Total liabilities and shareholders' equity
$695,000
$396.000
P.
P.
P.
P.
Additional information regarding 2021:
P.
P.
1.
Net income was $52,000.
P.
P.
P.
2.
A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year.
A gain on the disposal of $39,000 was recorded when an old building was sold for $57,000 cash. A new building was
purchased for $367.000 and depreciation expense on buildings for the year was $60,000.
3.
P.
P.
P.
P.
Equipment costing $68.000 was purchased while a loss of $9,000 was recorded on equipment that was sold for $5,000. The
equipment that was sold late in the year had accumulated depreciation of $11,000.
4.
5.
The company took out $205,000 of new bank loans during the year.
6.
Dividends were declared and paid and no common shares were bought back by the company.
(a)
Prepare the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with elther a- sign eg. -15,000 or in
parenthesis eg. (15,000).)
CARLA VISTA LTD.
Statement of Cash Flows-Indirect Method
422 PM
4/12/2022
22er
![P.
P,
Carla Vista Ltd.
P.
P.
Statement of Financial Position
December 31
P.
P.
P.
Assets
2021
2020
P.
Cash
$24,000
$0
P.
P.
P.
Accounts receivable
20,000
34,000
P.
P
Inventory
34,000
59,000
P.
P.
P.
Land
100,000
111,000
P.
Buildings
263,000
P.
526,000
P,
P,
Accumulated depreciation-buildings
(79,000 )
(105,000 )
P.
P.
Equipment
86,000
43,000
P,
P,
Accumulated depreciation-equipment
(16,000 )
(9,000 )
P.
P.
P.
Total assets
$695,000
$396,000
Liabilities and Shareholders' Equity
Bank overdraft
$0
$13,000
Accounts payable
$39,000
$21,000
Income tax payable
3,000
2,000
Interest payable
5,000
6,000
Dividends payable
3,000
1,000
Bank loan payable-current portion
26,000
21,000
Bank loan payable-non-current portion
382,000
217,000
ng
NO A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc69d710-fcd9-4562-932e-dd67c4f1ce9e%2Fbe5d1796-6240-44f6-9ee7-e70c93dcdabe%2Fqq8hrns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P.
P,
Carla Vista Ltd.
P.
P.
Statement of Financial Position
December 31
P.
P.
P.
Assets
2021
2020
P.
Cash
$24,000
$0
P.
P.
P.
Accounts receivable
20,000
34,000
P.
P
Inventory
34,000
59,000
P.
P.
P.
Land
100,000
111,000
P.
Buildings
263,000
P.
526,000
P,
P,
Accumulated depreciation-buildings
(79,000 )
(105,000 )
P.
P.
Equipment
86,000
43,000
P,
P,
Accumulated depreciation-equipment
(16,000 )
(9,000 )
P.
P.
P.
Total assets
$695,000
$396,000
Liabilities and Shareholders' Equity
Bank overdraft
$0
$13,000
Accounts payable
$39,000
$21,000
Income tax payable
3,000
2,000
Interest payable
5,000
6,000
Dividends payable
3,000
1,000
Bank loan payable-current portion
26,000
21,000
Bank loan payable-non-current portion
382,000
217,000
ng
NO A
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