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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: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.
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
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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