King Corp., a private company reporting under ASPE, reported the following for the years ended July 31, 2024 and 2023: 

Additional information: 

1. Profit for 2024 was $106,500. 

2. Common shares were issued for $35,000. 

3. Land with a cost of $60,000 was sold at a gain of $30,000; $55,000 cash was received and a note receivable was issued for the remainder. 

4. Purchased land with a cost of $100,000 with cash. 

5. Equipment with a cost of $25,000 and carrying value of $20,000 was sold for $14,000 cash. 

6. Equipment was purchased with cash. 

Instructions 

Prepare a cash flow statement for the year using the indirect method.  

Is it favourable for a company to have a net cash inflow from financing activities?

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Assets Cash Accounts receivable Inventory Prepaid expenses Notes receivable Land Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Salaries payable Income tax payable KING CORP. Balance Sheet July 31 Mortgage note payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $ 24,200 106,000 202,000 7,500 40,000 145,000 225,000 (81,000) $668,700 $ 33,000 6,500 6,000 65,000 185,000 373,200 $668,700 2023 $ 11,000 92,000 190,000 6,000 5,000 105,000 170,000 (35,000) $544,000 $ 42,000 3,800 1,500 80,000 150,000 266,700 $544,000