Question 1 Below is the comparative balance sheet for Cambridge Industries Ltd.: Cambridge Industries ltd. Balance Sheet December 31 2020 2019 Assets: $ 32,300 S 40,800 Cash 79,900 107,100 Accounts receivable 88,400 81,600 Investments - trading (FVNI) 86,700 49,300 Land 425,000 345,100 Plant assets (147,900) (136,000) Accumulated depreciation - plant assets Total assets Liabilities and Equity: S $64400 S 487900 $ 18,700 S 6,800 Accounts payable 8,000 10,000 Current portion of long-term note 119,500 75,000 Long-term note payable 130,900 81,600 Common shares 287,300 314,500 Retained camings Total liabilities and cquity 564.400 S 487.900 Additional information: 1. Net income for the year ended December 31, 2019 was $161,500. 2. Cash dividends were declared and paid during 2019. 3. Plant assets with an original cost of $51,000 and with accumulated depreciation of $13,600 were sold for proceeds equal to book value during 2019. 4. The investments are reported at their fair value on the balance sheet date. During 2019, investments with a cost of $12,000 were purchased. No other investment transactions occurred during the year. Fair value adjustments are reported directly on the income statement. 5. In 2019 land was acquired through the issuance of common shares. The balance of the common shares issued were for cash. Required: Using the indirect method, prepare the statement of cash flows for the yean ended December 31, 2019 in good form including all required disclosures.
Question 1 Below is the comparative balance sheet for Cambridge Industries Ltd.: Cambridge Industries ltd. Balance Sheet December 31 2020 2019 Assets: $ 32,300 S 40,800 Cash 79,900 107,100 Accounts receivable 88,400 81,600 Investments - trading (FVNI) 86,700 49,300 Land 425,000 345,100 Plant assets (147,900) (136,000) Accumulated depreciation - plant assets Total assets Liabilities and Equity: S $64400 S 487900 $ 18,700 S 6,800 Accounts payable 8,000 10,000 Current portion of long-term note 119,500 75,000 Long-term note payable 130,900 81,600 Common shares 287,300 314,500 Retained camings Total liabilities and cquity 564.400 S 487.900 Additional information: 1. Net income for the year ended December 31, 2019 was $161,500. 2. Cash dividends were declared and paid during 2019. 3. Plant assets with an original cost of $51,000 and with accumulated depreciation of $13,600 were sold for proceeds equal to book value during 2019. 4. The investments are reported at their fair value on the balance sheet date. During 2019, investments with a cost of $12,000 were purchased. No other investment transactions occurred during the year. Fair value adjustments are reported directly on the income statement. 5. In 2019 land was acquired through the issuance of common shares. The balance of the common shares issued were for cash. Required: Using the indirect method, prepare the statement of cash flows for the yean ended December 31, 2019 in good form including all required disclosures.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1
Below is the comparative balance sheet for Cambridge Industries Ltd.:
Cambridge Industries Ltd.
Balance Sheet
December 31
2019
2020
Assets:
$ 32,300 $ 40,800
Cash
79,900
107,100
Accounts receivable
88,400
81,600
Investments- trading (FVNI)
86,700
49,300
Land
425,000 345,100
Plant assets
(147,900) (136,000)
Accumulated depreciation - plant assets
Total assets
Liabilities and Equity:
$ 564,400 S 487,900
$18,700 S
6,800
Accounts payable
8,000
10,000
Current portion of long-term note
119,500
75,000
Long-term note payable
130,900
81,600
Common shares
287,300
314,500
Retained eamings
Total liabilities and equity
2 564.400 S 487,900
Additional information: 1
1. Net income for the year ended December 31, 2019 was S161,500.
2. Cash dividends were declared and paid during 2019.
3. Plant assets with an original cost of $51,000 and with accumulated depreciation
of $13,600 were sold for proceeds equal to book value during 2019.
4. The investments are reported at their fair value on the balance sheet date.
During 2019, investments with a cost of $12,000 were purchased. No other
investment transactions occurred during the year. Fair value adjustments are
reported directly on the income statement.
5. In 2019 land was acquired through the issuance of common shares. The balance
of the common shares issued were for cash.
Required: Using the indirect method, prepare the statement of cash flows for the year
ended December 31, 2019 in good form including all required disclosures.
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