The comparative statement of financial position of Marigold Corporation as at December 31, 2023, follows: MARIGOLD CORPORATION Statement of Financial Position December 31 Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total 2023 December 31 $51,500 90,700 26,100 (9,600) $158,700 $20,500 100,000 38,200 $158,700 2022 $11,100 87,300 22,700 (11,700) $109,400 $14,500 80,200 14,700 $109,400 Net income of $36,300 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,800 and accumulated depreciation of $7,000) was sold for $7,700. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Marigold prepares financial statements in accordance with ASPE. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
The comparative statement of financial position of Marigold Corporation as at December 31, 2023, follows: MARIGOLD CORPORATION Statement of Financial Position December 31 Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total 2023 December 31 $51,500 90,700 26,100 (9,600) $158,700 $20,500 100,000 38,200 $158,700 2022 $11,100 87,300 22,700 (11,700) $109,400 $14,500 80,200 14,700 $109,400 Net income of $36,300 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,800 and accumulated depreciation of $7,000) was sold for $7,700. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Marigold prepares financial statements in accordance with ASPE. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The comparative statement of financial position of Marigold Corporation as at December 31, 2023, follows:
MARIGOLD CORPORATION
Statement of Financial Position
December 31
Assets
Cash
Accounts receivable
Equipment
Less: Accumulated depreciation
Total
Liabilities and Shareholders' Equity
Accounts payable
Common shares
Retained earnings
Total
2023
December 31
$51,500
90,700
26,100
(9,600)
$158,700
$20,500
100,000
38,200
$158,700
2022
$11,100
87,300
22,700
(11,700)
$109,400
$14,500
80,200
14,700
$109,400
Net income of $36,300 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and
equipment with a carrying value of $4,800 (cost of $11,800 and accumulated depreciation of $7,000) was sold for $7,700.
Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Marigold prepares
financial statements in accordance with ASPE. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g.
(15,000).)
Transcribed Image Text:Cash Flows from Operating Activities
Net Income /(Loss)
Depreciation Expense
Adjustments to reconcile net income to
net cash provided by operating activities:
Increase in Accounts Receivable
Gain on Disposal of Equipment V
Increase in Accounts Payable V
Net Cash Provided by Operating Activities
Proceeds from Sale of Equipment
MARIGOLD CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2023
Cash Flows from Investing Activities
Purchase of Equipment
V
Net Cash Used by Investing Activities
Payment of Cash Dividends
Cash Flows from Financing Activities
Issuance of Common Shares
Net Increase in Cash
Net Cash Provided by Financing Activities
Cash at Beginning of Year
Cash at End of Year
$
V
2,100
2,900
-3,400
6,000
7,700
-4,800
-12,800
19,800
$
$
36,300
7,600
43,900
1₁
2,900
7,000
53,800
11,100
64,900
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