MASH Inc. Statement of Financial Position as at December 31, Current assets Cash Accounts receivable Inventory Land Building Accumulated depreciation, Building Equipment Accumulated depreciation, Equipment Current liabilities Accounts payable Unearned revenue Current portion of long-term debt Mortgage payable Common shares Retained earnings 2022 $48,000 60,000 95,000 203,000 750,000 1,200,000 -400,000 250,000 -110,000 $1,893,000 $80,000 30,000 40,000 150,000 440,000 250,000 1,053,000 $1,893,000 2021 $36,000 50,000 101,000 187,000 400,000 1,200,000 -350,000 300,000 -100,000 $1.637,000 $45,000 40,000 85,000 480,000 150,000 922,000 $1,637,000 MASH Inc. Statement of Income for the year ended December 31, Sales Cost of goods sold Gross margin Operating expenses Advertising and promotion Bank charges Depreciation (note 1) Insurance Interest Office Repairs and maintenance Telecommunications Utilities Operating income Other income (expenses) Loss on sale of equipment Net income before tax Income tax Net income 2022 $1,500,000 900,000 600,000 37,000 1,500 70,000 18,000 24,000 21,000 13,500 9,000 16,000 210,000 390,000 -25,000 365,000 55,000 $310,000 2021 $1,390,000 764,500 625,500 32,200 1,100 72,000 17,000 26,000 18,000 15,000 8,800 15,400 205,500 420,000 0 420,000 63,000 $357,000
MASH Inc. Statement of Financial Position as at December 31, Current assets Cash Accounts receivable Inventory Land Building Accumulated depreciation, Building Equipment Accumulated depreciation, Equipment Current liabilities Accounts payable Unearned revenue Current portion of long-term debt Mortgage payable Common shares Retained earnings 2022 $48,000 60,000 95,000 203,000 750,000 1,200,000 -400,000 250,000 -110,000 $1,893,000 $80,000 30,000 40,000 150,000 440,000 250,000 1,053,000 $1,893,000 2021 $36,000 50,000 101,000 187,000 400,000 1,200,000 -350,000 300,000 -100,000 $1.637,000 $45,000 40,000 85,000 480,000 150,000 922,000 $1,637,000 MASH Inc. Statement of Income for the year ended December 31, Sales Cost of goods sold Gross margin Operating expenses Advertising and promotion Bank charges Depreciation (note 1) Insurance Interest Office Repairs and maintenance Telecommunications Utilities Operating income Other income (expenses) Loss on sale of equipment Net income before tax Income tax Net income 2022 $1,500,000 900,000 600,000 37,000 1,500 70,000 18,000 24,000 21,000 13,500 9,000 16,000 210,000 390,000 -25,000 365,000 55,000 $310,000 2021 $1,390,000 764,500 625,500 32,200 1,100 72,000 17,000 26,000 18,000 15,000 8,800 15,400 205,500 420,000 0 420,000 63,000 $357,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Note 1
Of the $70,000 depreciation expense, $50,000 relates to the building
and $20,000 relates to the equipment.
Required:
a) Prepare the Cash Flow from Operations section of the Cash Flow Statement
for the year ended December 31, 2022.
b) Prepare the Cash Flow from Investing section of the Cash Flow Statement
for the year ended December 31, 2022.
Transcribed Image Text:MASH Inc.
Statement of Financial Position
as at December 31,
Current assets
Cash
Accounts receivable
Inventory
Land
Building
Accumulated depreciation, Building
Equipment
Accumulated depreciation, Equipment
Current liabilities
Accounts payable
Unearned revenue
Current portion of long-term debt
Mortgage payable
Common shares
Retained earnings
2022
$48,000
60,000
95,000
203,000
750,000
1,200,000
-400,000
250,000
-110,000
$1,893,000
$80,000
30,000
40,000
150,000
440,000
250,000
1,053,000
$1,893,000
2021
$36,000
50,000
101,000
187,000
400,000
1,200,000
-350,000
300,000
-100,000
$1,637,000
$45,000
40,000
85,000
480,000
150,000
922,000
$1,637,000
MASH Inc.
Statement of Income
for the year ended December 31,
Sales
Cost of goods sold
Gross margin
Operating expenses
Advertising and promotion
Bank charges
Depreciation (note 1)
Insurance
Interest
Office
Repairs and maintenance
Telecommunications
Utilities
Operating income
Other income (expenses)
Loss on sale of equipment
Net income before tax
Income tax
Net income
2022
$1,500,000
900,000
600,000
37,000
1,500
70,000
18,000
24,000
21,000
13,500
9,000
16,000
210,000
390,000
-25,000
365,000
55,000
$310,000
2021
$1,390,000
764,500
625,500
32,200
1,100
72,000
17,000
26,000
18,000
15,000
8,800
15,400
205,500
420,000
0
420,000
63,000
$357,000
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