1 (27 marks) Using the financial statements and the transactional data reported for Bryant Limited, prepare a statement of cash flows using the indirect method. Ensure to report any non-cash investing and financing activities. Bryant Limited Balance Sheet As at December 31, 2021 2021 2020 Assets Cash $ 14,000 $ 8,000 Accounts receivable $ 12.000 $ 9.500 Inventory S 16,000 $ 14,000 Long-term investments $ 145,000 $ 95.500 Property, Plant & Equipment (net) Total assets $ 93,000 $ 84,000 $ 280.000 $ 211,000 Liabilities and Shareholders' Equity Liabilities Accounts payable $ 11,700 $ 15,000 Accrued liabilities $ 4,800 $ 2,000 Long-term notes payable $ 43.000 $ 51,000 Bonds payable $ 50.000 Total liabilities $ 109,500 $ 68,000 Shareholders' equity Common shares $ 21,000 $ 15.000 Retained eamings $ 149,500 $ 128,000 Total equity * 170,500 $ 143,000 Total liabilities & equity S 280,000 $ 211,000 Bryant Limited Income Statement For the Year Ended December 31, 2021 Sales Revenue 191,000 Cost of goods sold 75,000 Gross Margin 116,000 Operating expenses Administrative expenses $ 4,000 Depreciation expense S 10,000 Other operating expenses $ 5,000 Salary expenses $ 42.000 Total operating expenses S 61.000 Other items: Gain on sale of long term investme 1,500 Loss on sale of equipment $ 3,000 Income before income tax 53,500 Income tax expense $ 21,000 Net income 32.500 Transaction Data for 2021 Purchase of long term investment 60,000 Proceeds on sale of long term investment (book value, $10,500) $ 12,000 Purchase of equipment 35,000 Proceeds on sale of equipment (carrying amount. $16,000) $ 13,000 Issuance of long term debt to borrow cash $ 12,000 Repayment of long term debt $ 20,000 Issuance of bonds payable for cash $ 50,000 Issuance of common shares for cash $ 6,000 Payment of cash dividends 11,000 Company purchased $80,000 in Machinery in exchange for a 1 year, 6% note payable $ 80,000 Question 2 (17 marks) You are considering investing in the Swisher Ltd. and to make your decision you have obtained the following financial information: Current Year Preceding Year Balance Sheet Cash $ 28,000 $ 32.000 Short-term investments $ 10,000 $ 17,000 Accounts receivables 5,000 $ 8,000 Prepaid Expenses $ 300 $ 2.500 Inventory $ 6,000 $ 4,500 Total Current Assets S 49,300 $ 64,000 Total Long-Term Assets 80,000 $ 82,000 Total Assets S 129,300 $ 146,000 Accounts Payable $ 25,000 $ 23,000 Accrued Liabilities $ 9,000 $ 7,500 Salary Payable S 7,000 $ 9,000 Total Current Liabilities 41,000 $ 39.500 Income Statement Net Sales Revenues $ 88,000 Cost of Goods Sold $ $7,000 Operating Expenses $ 15.300 "interest expense included in operating expenses 3,000 The industry averages for certain ratios are as follows: Industry Benchmarks Current Ratio 1.35 Acid test quick ratio 1.10 Inventory Tumover 9:00 Accounts Receivable Turnover 7.00 Return on Total Assets 12.00% Gross Profit Percentage 30.00% Retum on Net Sales 17.00% Com 204, Spring 2022 Assignment 6, Chapters 9 & 10 Total- Required Complete the following ratio analysis for the current year to determine if this would be a good company to invest in. When making your decision consider the company's liquidity, profitability, and ability to effectively use assets compared to the industry. Would you invest in this company? 1. Current Ratio 2. Quick (acid-test) ratio 3. Inventory Turnover 4. Accounts Receivable Turnover 5. Return on Total Assets 6. Gross Profit Percentage 7. Return on Net Sales