The comparative unclassified statement of financial position for Sheridan Ltd. follows: Assets Cash Term deposits (maturing in 60 days) Additional information pertaining to 2024: 1. 2. 3. Sheridan Ltd. Statement of Financial Position December 31 5. 6. 7. Accounts receivable Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets 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 8. 9. 10. 11. 2024 $50,400 4,600 90,000 178,000 Net income was $80,000. Sales were $972,000. Cost of goods sold was $756,000. 2023 $24,100 900 78,500 185,000 3,000 79,000 100,000 270,000 174,000 (79,000) (30,000) $599,000 $535,500 6,000 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. 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.
The comparative unclassified statement of financial position for Sheridan Ltd. follows: Assets Cash Term deposits (maturing in 60 days) Additional information pertaining to 2024: 1. 2. 3. Sheridan Ltd. Statement of Financial Position December 31 5. 6. 7. Accounts receivable Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets 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 8. 9. 10. 11. 2024 $50,400 4,600 90,000 178,000 Net income was $80,000. Sales were $972,000. Cost of goods sold was $756,000. 2023 $24,100 900 78,500 185,000 3,000 79,000 100,000 270,000 174,000 (79,000) (30,000) $599,000 $535,500 6,000 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. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
2.
3.
5.
6.
7.
8.
9.
Sheridan Ltd.
Statement of Financial Position
December 31
10.
11.
2024
$50,400
4,600
Interest expense was $14,000.
Income tax expense was $30,000.
90,000
178,000
6,000
79,000
270,000
(79,000)
$599,000
$22,000
10,000
165,000
201,000
201,000
2023
$24,100
900
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
174,000
(30,000)
$535,500
$45,000
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.
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 eg -45,000,
or in parenthesis ex(45,0001)
SHERIDAN LTD.
Statement of Cash Flows-Indirect Method
Adjustments to reconcile net income to
<<
$
$
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education