Below is the comparative statement of financial position for Velor Inc., a company that reports under IFRS. In addition, Velor Inc.'s income statement for 2017 is presented. 1. Machinery at a net book value of $14,000 was sold for cash during the year. It was originally purchased for $16,400. 2. The company uses the equity in earnings method to account for its 35% shares investment in associate, Stake Technology Inc. No shares were purchased or sold during the year. 3. During fiscal 2017, a trademark was purchased for $3,600 cash. 4. During fiscal 2017, the company declared and paid cash dividends. Share dividends were also declared and distributed ($2,800) 5. Velor Inc. paid $14,000 cash to retire common shares which had an average cost of $9,000. Prepare a statement of cash flows using the indirect method. Be sure to include the two subheadings in the operating activities section regarding the adjustments to net income for non-cash items and the cash in (out) from the working capital accounts. Please make sure your final answer(s) are accurate to 2 decimal places. Velor Inc. Balance Sheet Velor Inc. Statement of Cash Flows For the Year Ended May 31, 2017 2,800 Cash Accounts receivable, net Inventory HTM investments Investment, Stake Technology Inc. Trademark Machinery Accumulated depreciation, machinery Total assets Accounts payable Income tax payable Dividends payable Bonds payable Common shares Contributed surplus Retained earnings.. Total liabilities and shareholders' equity May 31, 2017 May 31, 2016 $42,800 $26,800 28,900 29,000 23,400 23,600 5,200 9,800 32,100 30,800 3,600 0 22,000 31,400 15,000 $143,000 $148,600 $21,600 $21,800 14,400 14,400 17,800 12,800 41,000 41,000 39,800 32,000 6,000 11,000 2,400 15,600 $143,000 $148,600 $81,600 31,200 50,400 Velor Inc. Income Statement For the Year Ended May 31, 2017 Sales Cost of goods sold. Gross profit Operating expenses Depreciation expense, $14,600 Salaries expense 26,600 Other expenses 15,600 Operating loss Other revenues and expenses Investment income (loss), Stake Technology Inc. 4,000 Gain on sale of HTM investment 900 Gain on sale of machinery 100 Interest expense (3,000) Net loss 56,800 (6,400) 2,000 ($4,400) Below is the comparative statement of financial position for Velor Inc., a company that reports under IFRS. In addition, Velor Inc.'s income statement for 2017 is presented. 1. Machinery at a net book value of $14,000 was sold for cash during the year. It was originally purchased for $16,400. 2. The company uses the equity in earnings method to account for its 35% shares investment in associate, Stake Technology Inc. No shares were purchased or sold during the year. 3. During fiscal 2017, a trademark was purchased for $3,600 cash. 4. During fiscal 2017, the company declared and paid cash dividends. Share dividends were also declared and distributed ($2,800) 5. Velor Inc. paid $14,000 cash to retire common shares which had an average cost of $9,000. Prepare a statement of cash flows using the indirect method. Be sure to include the two subheadings in the operating activities section regarding the adjustments to net income for non-cash items and the cash in (out) from the working capital accounts. Please make sure your final answer(s) are accurate to 2 decimal places. Velor Inc. Balance Sheet Velor Inc. Statement of Cash Flows For the Year Ended May 31, 2017 2,800 Cash Accounts receivable, net Inventory HTM investments Investment, Stake Technology Inc. Trademark Machinery Accumulated depreciation, machinery Total assets Accounts payable Income tax payable Dividends payable Bonds payable Common shares Contributed surplus Retained earnings.. Total liabilities and shareholders' equity May 31, 2017 May 31, 2016 $42,800 $26,800 28,900 29,000 23,400 23,600 5,200 9,800 32,100 30,800 3,600 0 22,000 31,400 15,000 $143,000 $148,600 $21,600 $21,800 14,400 14,400 17,800 12,800 41,000 41,000 39,800 32,000 6,000 11,000 2,400 15,600 $143,000 $148,600 $81,600 31,200 50,400 Velor Inc. Income Statement For the Year Ended May 31, 2017 Sales Cost of goods sold. Gross profit Operating expenses Depreciation expense, $14,600 Salaries expense 26,600 Other expenses 15,600 Operating loss Other revenues and expenses Investment income (loss), Stake Technology Inc. 4,000 Gain on sale of HTM investment 900 Gain on sale of machinery 100 Interest expense (3,000) Net loss 56,800 (6,400) 2,000 ($4,400)
