Blue House Inc. had the following condensed statement of financial position at December 31, 2019: BLUE HOUSE INC. Statement of Financial Position December 31, 2019 Cash Current assets (non-cash) Bond investment at amortized cost $10.700 Current liabilities $15,400 34,150 Long-term notes payable 30,700 40,350 Bonds payable 32,650 Plant assets (net) 58,400 Common shares 80,350 Land 39,150 Retained earnings 23,650 $182.750 $182.750 Blue House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. During 2020. the following occurred: 1. Blue House Inc. sold part of its investment portfolio in bonds for $16,900, resulting in a gain of $390. Dividends totalling $16,800 were paid to shareholders. Dividends paid are treated as financing activities. 2. 3. 4. 5. 6. A parcel of land, to be used as a parking lot, was purchased for $4.900. Common shares were issued for cash totalling $18,300 Bonds payable of $8,000 were retired at par. Equipment was purchased through the issuance of $30,000 of bonds. Net income for 2020 was $47.000 after allowing for depreciation on Blue House Inc's plant assets of $14,000. The amount of interest paid during 2020 was $4.170 and the amount of income taxes paid was $20,500. Both current assets (other than cash) and current liabilities remained at the same amount. 7. 8. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE HOUSE INC. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income to net cash provided by operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash Paid During the Year for interest Cash Paid During the Year for Income Taxes Issuance of Bonds for Equipment Dividends Paid Gain on Disposal of Investment in Bonds Proceeds from Issuance of Common Shares Sale of Land Payments to Retire Bonds Payable Depreciation Expense Net Income /(Loss) Loss on Disposal of Investment in Bonds Proceeds on Sale of Investment in Bonds Purchase of Land 4 $ Supplemental disclosures of cash flow information: $ e Textbook and Media Prepare a condensed statement of financial position at December 31, 2020, for Blue House Inc. (List Assets in order of liquidity.) BLUE HOUSE INC. Statement of Financial Position Assets Liabilities and Equity Liabilities and Equity | $ Liabilities and Equity . $ Land Bonds Payable Long-Term Notes Payable Current Assets Other than Cash Cash Plant Assets (Net) Common Shares Current Liabilities Retained Earnings Bond Investment at Amortized Cost