Arts de France Ltée's comparative balance sheet at September 30, 2017, included the following balances:

Transaction data for the year ended September 30, 2017, were:
a. Net income, $66,900
b. Depreciation expense on equipment, $8,500
c. Purchased long-term investments, $37,300
d. Sold land for $38,100, including $10,900 gain
e. Acquired equipment by issuing long-term note payable, $26,300
f. Paid long-term note payable, $24,700
g. Received cash of $51,900 for issuance of common shares
h. Paid cash dividends, $64,300
i. Acquired equipment by issuing short-term note payable, $22,000
Requirement
Prepare Arts de France's statement of cash flows for the year ended September 30, 2017, using the direct method to report operating activities. Also, prepare the accompanying schedule of non-cash investing and financing activities. All current accounts except short-term notes payable result from operating transactions. Prepare a supplementary schedule showing cash flows from operations by using the direct method. The accounting records provide the following: collections from customers, $343,100; interest received, $8,600; payments to suppliers, $216,400; payments to employees, $63,000; payment of income tax, $21,200; payment of interest, $10,700.

Transcribed Image Text:

Arts de France Ltée Balance Sheet As at September 30, 2017 and 2016 Increase (Decrease) 2017 2016 3 Current assets $ 21,700 17,6004,100 (800) 4,800 (700) 37,300 39,800 (27,200) 57,300 Cash 5 Accounts receivable 46,000 121,700 8,600 51,100 131,900 47,100 46,800 116,900 9,300 13,800 92,100 74,300 370,800 Inventories 7 Prepaid expenses 8 Long-term investment 9 Equipment, net 10 Land 12 Current liabilities: 13 14 Accounts payable 15 Accrued liabilities 16 Salary payable 17 Long-term note payable 18 Common shares 19 Retained earnings 20 21 Notes payable, short-term $ 22,000 S 0 22,000 (10,000) (11,200) 88,100 17,900 1,500 123,000 113,900 61,700 98,100 29,100 1,100 121,400 62,000 59,100 1,600 51,900 2,600 $ 428,100 $370,800$57,300