Statement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable Inventories Long-term investments Equipment Accumulated depreciation Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt Common shares Retained earnings Total liabilities and shareholders' equity 20X9 $ 250,000 325,000 530,000 715,000 200,000 1,700,000 (450,000) 85,000 $3,355,000 $ 815,000 340,000 1,180,000 1,020,000 $3,355,000 20X8 $ 120,000 525,000 635,000 300,000 1,000,000 (450,000) 100,000 $2,230,000 $ 710,000 960,000 560,000 $2,230,000 Page 283 Laurel Inc. additional information: • Net earnings for 20X9 were $712,000. • Equipment with an original cost of $400,000 and a NBV of $150,000 was sold for $150,000 during the year. . Long-term investments were sold for $135,000 during the year. • Short-term investments acquired are treasury bills with an original term of three months. Required: Prepare an SCF for 20X9 using the indirect method. Note any assumptions made during your SCF preparation.

Statement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable Inventories Long-term investments Equipment Accumulated depreciation Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt Common shares Retained earnings Total liabilities and shareholders' equity 20X9 $ 250,000 325,000 530,000 715,000 200,000 1,700,000 (450,000) 85,000 $3,355,000 $ 815,000 340,000 1,180,000 1,020,000 $3,355,000 20X8 $ 120,000 525,000 635,000 300,000 1,000,000 (450,000) 100,000 $2,230,000 $ 710,000 960,000 560,000 $2,230,000 Page 283 Laurel Inc. additional information: • Net earnings for 20X9 were $712,000. • Equipment with an original cost of $400,000 and a NBV of $150,000 was sold for $150,000 during the year. . Long-term investments were sold for $135,000 during the year. • Short-term investments acquired are treasury bills with an original term of three months. Required: Prepare an SCF for 20X9 using the indirect method. Note any assumptions made during your SCF preparation.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 3PA

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