Taika Waititi Ltd. had the following comparative statement of financial position:Taika Waititi Ltd.Comparative Statement of Financial PositionAs at December 31 20222021Cash$20,500$12,500Accounts receivable34,00025,500Inventories20,00030,000Prepaid insurance2,5002,000Equipment102,00090,000Accumulated depreciation—equipment(22,500)(12,500)Total assets$156,500$147,500 Accounts payable$23,000$20,000Wages payable4,0002,000Interest payable2,0003,000Income taxes payable4,0005,000Long-term note payable30,00034,500Common shares65,00065,000Retained earnings28,50018,000Total liabilities and shareholders’ equity$156,500$147,500Additional information:Net income for the fiscal year was $13,500Equipment that cost $10,000 and was sold for a gain of $1,000 during 2022. The equipment’s accumulated depreciation was $7,000.RequiredPrepare the statement of cash flows using the indirect format.

Taika Waititi Ltd. Statement of Cash Flows (Indirect Method)…

Answered: Taika Waititi Ltd. had the following…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

Related questions

Question

Taika Waititi Ltd. had the following comparative statement of financial position:

Taika Waititi Ltd. Comparative Statement of Financial Position As at December 31
	2022	2021
Cash	$20,500	$12,500
Accounts receivable	34,000	25,500
Inventories	20,000	30,000
Prepaid insurance	2,500	2,000
Equipment	102,000	90,000
Accumulated depreciation—equipment	(22,500)	(12,500)
Total assets	$156,500	$147,500

Accounts payable	$23,000	$20,000
Wages payable	4,000	2,000
Interest payable	2,000	3,000
Income taxes payable	4,000	5,000
Long-term note payable	30,000	34,500
Common shares	65,000	65,000
Retained earnings	28,500	18,000
Total liabilities and shareholders’ equity	$156,500	$147,500

Additional information:

Net income for the fiscal year was $13,500
Equipment that cost $10,000 and was sold for a gain of $1,000 during 2022. The equipment’s accumulated depreciation was $7,000.

Required