Coyote Ltd., a private company reporting under ASPE, reported the following for the years ended May 31,

Question:

Coyote Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2021, and 2020.

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Additional information:

1. Profit for 2021 was $108,000.

2. Common shares were issued for $50,000.

3. Land with a cost of $50,000 was sold at a loss of $20,000.

4. Purchased land with a cost of $100,000 with a $55,000 down payment and financed the remainder with a mortgage note payable.

5. No equipment was sold during 2021.

Instructions

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

Taking It Further

Is it unfavourable for a company to have a net cash outflow from financing activities?

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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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