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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hh1.

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A5-5 Statement of Cash Flows (LO5.5):
★★
connect
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
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.
Page 283
• 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.
Transcribed Image Text:A5-5 Statement of Cash Flows (LO5.5): ★★ connect 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 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. Page 283 • 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.
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