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 Prepare the statement of cash flows using the indirect format.
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 Prepare the statement of cash flows using the indirect format.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
- Prepare the statement of cash flows using the indirect format.
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