Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. FVTOC investments with an original cost of $48,600 were sold in 2020 for proceeds of $38,000. The investments had a carrying value of $42,000 at the beginning of 2020. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method., b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. c. Calculate cash flow from investing activities.
Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. FVTOC investments with an original cost of $48,600 were sold in 2020 for proceeds of $38,000. The investments had a carrying value of $42,000 at the beginning of 2020. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method., b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. c. Calculate cash flow from investing activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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All of the information is there! I have posted this question multiple times and you keep saying that there is information missing. Nothing is missing. Please answer the question in the images.
Transcribed Image Text:Additional information
1.
Depreciation expense of $182,000 is included in operating expenses.
2.
The company acquired equipment during the year.
3.
The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale.
4.
The short-term bank loans are considered cash and cash equivalents.
5.
Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020.
6.
FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds
The investments had a carrying value of $42,000 at the beginning of 2020.
$38,000.
Required -
a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method.
b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method.
c. Calculate cash flow from investing activities.
Transcribed Image Text:The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd.
Kaminsky Ltd
Statement of Financial Position
As at December 31, 2020
2020
2019
Assets
24,700 $
188,500
(15,000)
Cash
41,750
Accounts receivable
183,400
Allowance for doubtful accounts
FVTOCI investments
FVTPL investments
Inventory
Prepaid insurance
(16,500)
260,000
200,000
60,000
80,000
161,000
16,000
665,650
150,000
1,480,000
-580,000
$ 1,400,000 $ 1,050,000
$ 2,120,200 $ 1,715,650
184,000
18,000
$ 720,200 $
Land
400,000
Buildings and equipment
Accumulated depreciation
1,650,000
-650,000
Liabilities and Shareholders' Equity
Short-term bank loan
Accounts payable
Unearned revenues
Tax payable
Dividends payable
22,000
5000
103,600
119,300
20,400
16,600
16,750
19,900
25,000
30,000
$ 187,250 $
$ 800,000 $
1,124,950
186,300
Common shares
800,000
747,350
-18,000
1,529,350
$ 2,120,200 $ 1,715,650
Retained earnings
AOCI- FVTOCI investments
8,000
1,932,950
Kaminsky Ltd
Statement of Income
for the Year Ended December 31, 2020
$ 3,350,000
1,340,000
Revenue
Cost of Goods Sold
Gross margin
Operating expenses
Bad debt expense
Interest expense
Тах ехpense
Gain on sale of equipment
2,010,000
717,000
4,100
44,500
311,100
17,000
FV adjustment on FVTPL investments
4,900
Gain on sale of FVTPL investments
7,500
Net income
OCI- FVTOCI investments
962,700
15,400
$ 978,100
Comprehensive income
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