Question 3 of 5The comparative unclassified statement of financial position for Ivanhoe Ltd. follows:AssetsCashIVANHOE LTD.Statement of Financial PositionDecember 31Accounts receivableInventoryEstimated inventory returnsLong-term investmentsEquipmentAccumulated depreciationTotal assetsLiabilities and Shareholders' EquityAccounts payableRefund liabilityBank loan payable (noncurrent)Common sharesRetained earningsTotal liabilities and shareholders' equity2021$58,00083,000176,0005,00073,000260,000(79,000 )$576,000$26,0009,000107,000217.000217,000$576,0002020$23,00073,500186,0003,000130,000160,000(38,000)$537,500$42.0006,000185,500174,000130,000$537,500 Additional information pertaining to 2021:1.2.3.4.5.6.7.8.9.10.11.Net income was $115,900.Sales were $996,000.Cost of goods sold was $756,000.Operating expenses were $49,000, exclusive of depreciation expense.Depreciation expense was $41,000.Interest expense was $13,000.Income tax expense was $27,000.Long-term investments were sold at a gain of $5,900.No equipment was sold during the year.$78,500 of the bank loan was repaid during the year.Common shares were issued for $43,000,Prepare a statement of cash flows using the direct method.BiA

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Net income was $115,900. Sales were $996,000. Cost of goods sold was $756,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $41,000. Interest expense was $13,000. Income tax expense was $27,000. Long-term investments were sold at a gain of $5,900. No equipment was sold during the year. $78,500 of the bank loan was repaid during the year. Common shares were issued for $43,000. Prepare a statement of cash flows using the direct method. A

Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Net income was $115,900. Sales were $996,000. Cost of goods sold was $756,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $41,000. Interest expense was $13,000. Income tax expense was $27,000. Long-term investments were sold at a gain of $5,900. No equipment was sold during the year. $78,500 of the bank loan was repaid during the year. Common shares were issued for $43,000. Prepare a statement of cash flows using the direct method. A

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1PEB

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