Chapter 22 Assignment ACCT3352-2021W Assignment #6 - SCF Question #1 Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below: Statements of Financial Position Dec 31/20 $ 51,000 45,000 48,000 Cash Accounts receivable Merchandise inventory Property, plant and equipment Less accumulated depreciation Total Assets Dec 31/19 $ 24,000 27,000 60,000 $ 120,000 (38,000) 82,000 $ 193,000 $ 76,000 (40,000) 36,000 $ 180,000 Accounts payable Income taxes payable Bonds payable Common shares Retained earnings Total Liabilities & Shareholders' Equity $ 22,000 44,000 45,000 27,000 42,000 $ 180,000 $ 12,000 49,000 75,000 27,000 30,000 $ 193,000 Income Statement Year ended December 31, 2020 Sales Cost of sales Gross profit Depreciation expense Selling and administrative expenses Income from operations Loss on sales of equipment Interest expense Income before taxes Income taxes Net income $ 1,050,000 894,000 156,000 10,000 83,000 63,000 6,000 9,000 48,000 12,000 $ 36,000 The following additional data were provided for calendar 2020: 1. Dividends declared and paid were $ 24,000. 2. Equipment was sold for $30,000. This equipment originally cost $44,000 and had a book value of $36,000 at the time of sale. 3. Bonds were retired during the year at par