The comparative unclassified statement of financial position for Sheridan Ltd. fo Sheridan Ltd. Statement of Financial Position December 31 Assets Cash Term deposits (maturing in 60 days) Accounts receivable Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets Additional information pertaining to 2024: 1. 2. 3. 5. 6. 7. 8. 9. 10. 2024 Liabilities and Shareholders' Equity Accounts payable $22,000 $45,000 Refund liability 10,000 3,000 Bank loan payable (non-current) 165,000 171,500 Common shares 201,000 180,000 Retained earnings 201,000 136,000 Total liabilities and shareholders' equity $599,000 $535,500 11. $50,400 4,600 2023 $24,100 900 90,000 178,000 6,000 79,000 270,000 174,000 (79,000) (30,000) $599,000 $535,500 78,500 185,000 No equipment was sold during the year. $6,500 of the bank loan was repaid during the year. Common shares were issued for $21,000. 3,000 100,000 Net income was $80,000. Sales were $972,000. Cost of goods sold was $756,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $49,000. Interest expense was $14,000. Income tax expense was $30,000. Long-term investments were sold at a gain of $6,000. These investmen these investments are recorded only when the investments are sold.
The comparative unclassified statement of financial position for Sheridan Ltd. fo Sheridan Ltd. Statement of Financial Position December 31 Assets Cash Term deposits (maturing in 60 days) Accounts receivable Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets Additional information pertaining to 2024: 1. 2. 3. 5. 6. 7. 8. 9. 10. 2024 Liabilities and Shareholders' Equity Accounts payable $22,000 $45,000 Refund liability 10,000 3,000 Bank loan payable (non-current) 165,000 171,500 Common shares 201,000 180,000 Retained earnings 201,000 136,000 Total liabilities and shareholders' equity $599,000 $535,500 11. $50,400 4,600 2023 $24,100 900 90,000 178,000 6,000 79,000 270,000 174,000 (79,000) (30,000) $599,000 $535,500 78,500 185,000 No equipment was sold during the year. $6,500 of the bank loan was repaid during the year. Common shares were issued for $21,000. 3,000 100,000 Net income was $80,000. Sales were $972,000. Cost of goods sold was $756,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $49,000. Interest expense was $14,000. Income tax expense was $30,000. Long-term investments were sold at a gain of $6,000. These investmen these investments are recorded only when the investments are sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The comparative unclassified statement of financial position for Sheridan Ltd. follows:
Assets
Cash
Term deposits (maturing in 60 days)
Accounts receivable
Inventory
Estimated inventory returns
Long-term investments
Equipment
Accumulated depreciation
Total assets
Liabilities and Shareholders' Equity
Accounts payable
Refund liability
Bank loan payable (non-current)
Common shares
Retained earnings
Total liabilities and shareholders' equity $599,000
Additional information pertaining to 2024:
1.
P
2.
3.
4.
5.
6.
7.
8.
Sheridan Ltd.
Statement of Financial Position
December 31
9.
10.
2024
$50,400
4,600
90,000
178,000
6,000
10,000
185,000
3,000
79,000
100,000
270,000
174,000
(79,000) (30,000)
$599,000
$535,500
165,000
$22,000 $45,000
201,000
201,000
2023
$24,100
900
78,500
No equipment was sold during the year.
$6,500 of the bank loan was repaid during the year.
11. Common shares were issued for $21,000.
3,000
171,500
180,000
136,000
$535,500
Net income was $80,000.
Sales were $972,000.
Cost of goods sold was $756,000.
Operating expenses were $49,000, exclusive of depreciation expense.
Depreciation expense was $49,000.
Interest expense was $14,000.
Income tax expense was $30,000.
Long-term investments were sold at a gain of $6,000. These investments are carried at their cost, so gains and losses on
these investments are recorded only when the investments are sold.
Transcribed Image Text:Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a-sign .g. -45,000,
or in parenthesise (45,000))
SHERIDAN LTD.
Statement of Cash Flows-Indirect Method
Adjustments to reconcile net income to
$
$
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