al Exam - Fall 2020 ker Time Left 2:57:59 Ziyi Xu: Attempt 1 Hubley Corporation reported the following on its 2020 financial statements: BALANCE SHEETS DECEMBER 31, 2020 and 2018 2029 2019 Difference CURRENT ASSETS Cash $ 145,878 $ 55,000 $ 90,878 Accounts receivable 229,000 101,000 128,000 261,000 279.000 (18,000] Inventory Income taxes receivable 8.000 (8,000) 635.876 443.000 LONG-TERM ASSETS Deferred Pension Cost 76,000 81,D00 (5,000) Land 326,000 190,000 127,000 Plant and equipment 609,000 667,000 (58,000) Accumulated amortization (90.000 (100,0001 10,000 921,000 847,000 TOTAL ASSETS $1.556.878 $1 290,000 266 878 CURRENT LIABILITIES Accounts payable $ 338,000 $ 315,000 23,000 Salaries and wages payable 260,000 210,000 50,000 Income taxes payable 10,000 10,000 Interest payable 4,000 8,000 (5,000] Unearned Revenue 3,000 5.000 (2,000) 615,090 539,000 LONG-TERM LIABILITY Note Payable 100,000 100,000 Discount on Note Payable (9 041) (8,041) Bonds payable 140,000 180,000 (40,090] Premium on Bonds Payable 3.000 3.000 Future Income tax 14,000 25,000 (11000) 247.959 205,000 Total Liabilities 862.959 744,000 SHAREHOLDERS EQUITY Contributed capital: common stock options outstanding 30.000 20.000 10.000 Common shares 483,000 340.000 103,000 F10 F1nal Exam - Fall 2020 (Remotely Proctored) Time Left 2:57:43 Zizi Xu: Attempt 1 Net Income $ 109,910 Additional Information: 1. Hubley purchased a single parcel of land for a cost of $127,090. The purchase was effected by Issuing common shares and paying cash. The issued common shares were valued at $23,000 and the balance was paid in cash. 2. Hubley acquired equipment by lasuing common shares worth $32,000. Hubley also sold one place of equipment for cash during the year with an original cost of $90,090 and related accumulated depreciation was removed on disposal 3. Hubley paid cash to repurchase long-term bonds with a face value of $50,000. These bonds were InBialy haved at par, On December 31, 2020, Hubley issued new bonds with a face value of $10,000. 4. On January 1. 2020, Hubley Issued a $100,000 note payable, bearing a nominal interest rate of 215, payable each December 31. At the time of issuance, the market rate of interest for a similar note was 7%. The maturity date is December 31, 2022 5. Early in the year, Hubley issued a stock dividend to shareholders with recorded value of $48,000. 6. During the year, Hubley declared and paid a cash dividend to the common shareholders. 7. Hubley Issued employee stock options on July 1, 2020 that vest on June 30, 2022. At the date of grant, these employee stock options had a fair value of $40,000. 8. The entire balance of accounts payable relates to suppliers of Inventory. REQUIRED Prepare the Cash Flow Statement for the year ended December 31, 2020, In good form and in accordance with generally accepted accounting principles, using the Indirect method. Show all calculations and disclose required supplemental financial disclosures, If any. Format B IUal Exam - Fall 2020 (Remotely Proctored) ime Left:2 57:49 Zlyi Xu: Attempt 1 247,959 205,000 Total Liabilities 602,959 744,000 SHAREHOLDERS' EQUITY Contributed capital: common stock options outstanding 30,000 20,000 10,000 483,000 380,000 103,000 Common shares Retained earnings 180,919 146 000 34919 693.910 546,000 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1.656 878 $1,290,000 260.878 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31. 2020 REVENUE Sales Revenue $ 1,040,000 EXPENSES Cost of Goods Sold 600.000 Salaries, wages and stock-based 190.000 compensation expense Depreciation expense 30,000 Interest expense on Bonds 17,000 Interest expense on Note Payable 6,081 Pension expense 14,000 Miscellaneous expense 4.090 Total Expenses (865,081) OTHER INCOME (LOSS] Loss on bond retirement (6,000] Gain on sale of equipment 13,000 Income before income taxes 181,910 Income tax expense including future tax benefit (72,000) Net Income $ 109,919 FIO