ANSWER THE TICKED BOX AND CHECK THE OTHER ANSWERS

( LAST ATTEMPT SO CORRECT ANSWER PLEASE)

Application Problem 5-6A a1 (Indirect Method) The following information is for Harley Holdings Ltd. for the year ended January 31, 2020. HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 2020 2019 Assets Current assets: Cash $47,000 $34,310 Accounts receivable 81,590 51,700 Inventory 89,860 95,600 Total current assets 218,450 181,610 Equipment 164,500 136,300 Accumulated depreciation, equipment (40,890) (36,660) Land 112,800 159,800 $454,860 $441,050 Liabilities and shareholders' equity Current liabilities: Accounts payable $42,580 $58,470 Dividends payable 12,220 4,700 Total current liabilities 54,800 63,170 Bank loan payable 94,000 131,600 Common shares 141,000 122,200 Retained earnings 165,060 124,080 $454,860 $441,050 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue $408,900 Cost of goods sold 277,300 Gross profit 131,600 Expenses Wages expense $14,290 Depreciation expense 24,910 Rent expense 14,190 Income tax expense 13,820 67,210 Operation income 64,390 Gain on sale of equipment 940 Net income $65,330 Additional information: 1. 2. Equipment costing $32,900 was sold for $13,160. Land was sold at cost and none was purchased during the year. HARLEY HOLDINGS LTD. Statement of Cash Flows, Indirect Method For the Year Ended January 31, 2020 Cash Flows from Operating Activities Net Income 65,330 Gain on Sale of Equipment 940 Depreciation Expense 24,910 Increase in Accounts Receivable 29,890 Decrease in Inventory 5,740 Decrease in Accounts Payable 15,890 Net Cash Provided by Operating Activities 49,260 Cash Flows from Investing Activities Proceeds from the sale of Equipment 13,160 Proceeds from the Sale of Land 47,000 Purchase of Equipment 61,100 Net Cash Provided by Investing Activities 940 Cash Flows from Financing Activities Dividend Paid Repayment of Bank Loan 37,600 Issuance of Common Shares 18,800 Net Cash Provided by Financing Activities - Opening Cash 34,310 Ending Cash 47,000 Net Change in Cash 12,690 Supplementary disclosures Cash paid for income tax 13,820