Chapter 13 (9 marks, 18 minutes)

Tulip Inc.
Statement of Financial Position
31-Dec-21
			2021	2020
Assets
Cash			72,575	40,992
Accounts receivable			69,353	33,489
Inventory			98,823	103,095
Long-term Investments			70,794	70,794
Equipment			237,392	172,109
Accumulated depreciation			(38,576)	(34,337)
Total assets			510,361	386,142
Liabilities and Shareholders' Equity
Accounts payable			49,767	38,364
Bank loan payable			64,011	64,011
Common shares			220,436	178,044
Retained earnings			176,147	105,723
Total liabilities and shareholders' equity			510,361	386,142
Tulip Inc.
Statement of Income
Year ended December 31, 2021
Sales				368,666
Cost of goods sold				(86,445)
Gross profit				282,221
Operating expenses				(75,080)
Income from operations				207,141
Other revenues and expenses
Interest expense			11,489	(11,489)
Income before tax				195,652
Income tax expense				(24,324)
Net income				171,328

Additional Information:

1. New equipment costing $90,000 was purchased for cash.
2. Equipment costing $24,717 was sold for $5,000, resulting in a gain of $1,044 that is included in operating expenses.
3. Additional common shares were issued during the year.
4. Cash dividends were paid during the year.
5. Included in operating expenses is an amount of $25,000 for depreciation.

Required:

Prepare in proper format, a Statement of Cash Flows for Tulip Inc. for the year ended

December 31, 2021, using the indirect method. SHOW ALL WORKINGS AND CALCULATIONS.

Chapter 13 (9 marks, 18 minutes) Tulip Inc. Statement of Financial Position 31-Dec-21 2021 2020 Assets Cash Accounts receivable Inventory Long-term Investments Equipment Accumulated depreciation Total assets 72,575 69,353 98,823 70,794 237,392 (38,576) 510,361 40,992 33,489 103,095 70,794 172,109 (34,337) 386,142 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity 49,767 64,011 220,436 176,147 38,364 64,011 178,044 105,723 510,361 386,142 Tulip Inc. Statement of Income Year ended December 31, 2021 368,666 (86,445) 282,221 (75,080) 207,141 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Interest expense Income before tax Income tax expense Net income 11,489 (11,489) 195,652 (24,324) 171,328 Additional Information: 1. New equipment costing $90,000 was purchased for cash. 2. Equipment costing $24,717 was sold for $5,000, resulting in a gain of $1,044 that is included in operating expenses. 3. Additional common shares were issued during the year